The above figure shows Jane's budget line and two of her indifference curves. How many lobster dinners will Jane purchase each month?

The rate-of-return regulated public utility can have incentive to use more capital than is efficient relative to other inputs

Indicate whether the statement is true or false

When someone is served pizza and soda for dinner, it is typical behavior to eat some pizza, then drink some soda, then eat more pizza, and so on, until the person stops consuming both. How can this behavior be explained using economic concepts?

A. The individual is revealing that he can't decide whether he gains more utility from pizza or from soda. B. People tend to act irrationally around food, and the concept of utility maximization cannot be applied. C. The person eats pizza until his marginal utility for pizza is lower than it is for soda, then he switches to soda. D. The concept of unlimited wants says he will never tire of eating pizza and soda.