[16] Operating in the short run with one fixed input and one variable input, the marginal product of the variable input is given as: MP= 10 - X, where X is the quantity of the input. Suppose the output price equals 3 and the price of the variable input equals 15. Interested in maximizing profit, the firm should utilize units of the variable input. A. В. 3 C. D. 9.8 [17] A wheel of cheddar cheese costs Amrit $40, and a night at a Broadway show costs him $100 (including the ticket, parking, etc.). Suppose when Amrit maximizes his utility, subject to his budget constraint, his marginal utility from cheddar cheese is 8. Therefore, his marginal utility from a Broadway show must equal: A. B. 3.2 20 C. 50 D. 100
[16] Operating in the short run with one fixed input and one variable input, the marginal product of the variable input is given as: MP= 10 - X, where X is the quantity of the input. Suppose the output price equals 3 and the price of the variable input equals 15. Interested in maximizing profit, the firm should utilize units of the variable input. A. В. 3 C. D. 9.8 [17] A wheel of cheddar cheese costs Amrit $40, and a night at a Broadway show costs him $100 (including the ticket, parking, etc.). Suppose when Amrit maximizes his utility, subject to his budget constraint, his marginal utility from cheddar cheese is 8. Therefore, his marginal utility from a Broadway show must equal: A. B. 3.2 20 C. 50 D. 100
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.4P
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![[16] Operating in the short run with one fixed input and one variable input, the marginal product of the
variable input is given as: MP = 10- X, where X is the quantity of the input. Suppose the output price equals
3 and the price of the variable input equals 15. Interested in maximizing profit, the firm should utilize
units of the variable input.
A.
В.
3
C.
D.
9.8
[17] A wheel of cheddar cheese costs Amrit $40, and a night at a Broadway show costs him $100
(including the ticket, parking, etc.). Suppose when Amrit maximizes his utility, subject to his budget
constraint, his marginal utility from cheddar cheese is 8. Therefore, his marginal utility from a Broadway
show must equal:
A.
В.
3.2
20
C.
50
D.
100
[18] Mr. Solow has an income of $20 which he is spending on wine and cheese in such amounts that he
derives 25 utils of total satisfaction from the wine and 25 utils of total satisfaction from the cheese. Suppose
the prices of wine and cheese are each S1. On the basis of this information we:
A.
cannot say whether or not Solow is buying wine and cheese in amounts that maximize his total
utility.
can say that Solow should buy more cheese and less wine.
can say that Solow should buy more wine and less cheese.
can say that Solow is buying the utility-maximizing amounts of wine and cheese.
В.
C.
D.
[19] For Anandi, Pepsi is a good for which marginal utility is diminishing Accordingly, if the price of
Pepsi increases, then the resulting decline in Anandi's quantity of Pepsi purchased will:
necessarily increase her total utility from consuming Pepsi
necessarily increase her marginal utility from consuming Pepsi
necessarily decrease her total expenditures devoted to Pepsi
All of the above
A.
B.
C.
D.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd07db21-7f62-43a4-bad0-8e7e67de277e%2Ff56951c7-cc94-4ced-b12b-adaa0d4e7a6f%2Fkj3e5k6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[16] Operating in the short run with one fixed input and one variable input, the marginal product of the
variable input is given as: MP = 10- X, where X is the quantity of the input. Suppose the output price equals
3 and the price of the variable input equals 15. Interested in maximizing profit, the firm should utilize
units of the variable input.
A.
В.
3
C.
D.
9.8
[17] A wheel of cheddar cheese costs Amrit $40, and a night at a Broadway show costs him $100
(including the ticket, parking, etc.). Suppose when Amrit maximizes his utility, subject to his budget
constraint, his marginal utility from cheddar cheese is 8. Therefore, his marginal utility from a Broadway
show must equal:
A.
В.
3.2
20
C.
50
D.
100
[18] Mr. Solow has an income of $20 which he is spending on wine and cheese in such amounts that he
derives 25 utils of total satisfaction from the wine and 25 utils of total satisfaction from the cheese. Suppose
the prices of wine and cheese are each S1. On the basis of this information we:
A.
cannot say whether or not Solow is buying wine and cheese in amounts that maximize his total
utility.
can say that Solow should buy more cheese and less wine.
can say that Solow should buy more wine and less cheese.
can say that Solow is buying the utility-maximizing amounts of wine and cheese.
В.
C.
D.
[19] For Anandi, Pepsi is a good for which marginal utility is diminishing Accordingly, if the price of
Pepsi increases, then the resulting decline in Anandi's quantity of Pepsi purchased will:
necessarily increase her total utility from consuming Pepsi
necessarily increase her marginal utility from consuming Pepsi
necessarily decrease her total expenditures devoted to Pepsi
All of the above
A.
B.
C.
D.
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