Table 7-4
-Refer to Table 7-4.For steak and cheese sandwiches and grilled chicken sandwiches,the table contains the values of the marginal utility (MU) and marginal utility per dollar (MU/P) for Mabel Jarvis.Mabel has $14 to spend on steak and cheese sandwiches and grilled chicken sandwiches.Which of the following statements is false?
A) The price of steak and cheese sandwiches is $4. The price of grilled chicken sandwiches is $2.
B) If Mabel maximizes her utility she will buy three grilled chicken sandwiches.
C) If Mabel maximizes her utility she will buy two steak and cheese sandwiches.
D) We do not have enough information to determine how many sandwiches Mabel will buy to maximize her utility.
Correct Answer:
Verified
Q41: Table 7-3 Q42: Table 7-3 Q43: Suppose the marginal utilities for the first Q51: If Joey Kobayashi experiences diminishing marginal utility Q62: The limitation that a consumer's total expenditure Q66: A budget constraint Q74: Optimal decisions are made Q76: The amount of income a consumer has Q77: Marv Pilson has $50 worth of groceries Q79: Which of the following is explained by
A)represents the bundles of consumption
A)in the marketplace.
B)if information
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