Sam spends all of his income on textbooks and hot dogs. The price of a textbook is $40 and the price of a hot dog is $0.50
If Sam is maximizing his utility and the marginal utility he derives from the last textbook he purchases is 400, then the marginal utility he derives from his last hot dog purchased must be A) 400.
B) 10.
C) 5.
D) 20.
C
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When a monopoly price discriminates, it charges the highest price to the group of buyers with the least elastic demand
a. True b. False Indicate whether the statement is true or false
The height of the demand curve for a product indicates the
a. minimum price consumers are willing to pay for an additional unit of it. b. minimum quantity consumers are willing to purchase at the current price. c. maximum price consumers are willing to pay for an additional unit of it. d. minimum price required to induce suppliers to produce an additional unit of it.