Suppose Colin's mom has decided to take him out to breakfast to celebrate his birthday. Colin is having a hard time deciding between breakfast combo #1 (3 pancakes and 2 scrambled eggs) and breakfast combo #2 (2 pancakes and 3 scrambled eggs) because they both sound equally good to him (and since his mom is paying for breakfast, he doesn't care about how much they cost). He ends up flipping a coin to decide which one to have. Which of following the statements are true? Select all that apply. Breakfast combo #1 and breakfast combo #2 are on the same indifference curve for Colin.Breakfast combo #1 and breakfast combo #2 are on the same indifference curve for Colin. Scrambled eggs and pancakes are perfect substitutes for Colin.Scrambled eggs and pancakes are perfect substitutes for Colin. If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be lower than if he had gotten breakfast combo #2. If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be lower than if he had gotten breakfast combo #2. If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be higher than if he had gotten breakfast combo #2. If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be higher than if he had gotten breakfast combo #2. Colin's marginal utility from eating another pancake will be higher if he gets breakfast combo #1 than if he gets breakfast combo #2. Colin's marginal utility from eating another pancake will be higher if he gets breakfast combo #1 than if he gets breakfast combo #2. Colin's marginal utility from eating another pancake will be lower if he gets breakfast combo #1 than if he gets breakfast combo #2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Colin's mom has decided to take him out to breakfast to celebrate his birthday. Colin is having a hard time deciding between breakfast combo #1 (3 pancakes and 2 scrambled eggs) and breakfast combo #2 (2 pancakes and 3 scrambled eggs) because they both sound equally good to him (and since his mom is paying for breakfast, he doesn't care about how much they cost). He ends up flipping a coin to decide which one to have. Which of following the statements are true? Select all that apply.

Breakfast combo #1 and breakfast combo #2 are on the same indifference curve for Colin.Breakfast combo #1 and breakfast combo #2 are on the same indifference curve for Colin.
Scrambled eggs and pancakes are perfect substitutes for Colin.Scrambled eggs and pancakes are perfect substitutes for Colin.
If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be lower than if he had gotten breakfast combo #2. If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be lower than if he had gotten breakfast combo #2.
If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be higher than if he had gotten breakfast combo #2. If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be higher than if he had gotten breakfast combo #2.
Colin's marginal utility from eating another pancake will be higher if he gets breakfast combo #1 than if he gets breakfast combo #2. Colin's marginal utility from eating another pancake will be higher if he gets breakfast combo #1 than if he gets breakfast combo #2.
Colin's marginal utility from eating another pancake will be lower if he gets breakfast combo #1 than if he gets breakfast combo #2.

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