Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 13, Problem 5SPPA
To determine
The comparison of
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Ramona is an asparagus farmer and the world asparagus market is perfectly competitive.
The market price is $23 a bundle. Ramona sells 800 bundles a week and her marginal cost is $25 a bundle.
The market price falls to $20 a bundle, and Ramona cuts her output to 500 bundles a week.
Ramona's average variable cost and marginal cost fall to S20 a bundle.
Ramona is
A. not maximizing profit because she has cut her asparagus production
O B. not maximizing profit because she is incurring an economic loss
C. maximizing profit and she is incurring an economic loss
O D. maximizing profit and she is making an economic profit
E. not maximizing profit because marginal revenue does not equal marginal cost
Suppose you consume 3 pounds of beef and 5 pounds of pork per month. The price of beef is $1.50 per pound , and pork is $2.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, what is the ratio of the marginal utility of beef for the marginal utility of pork?
Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She
estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake
is $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake?
Cups of
Coffee
1
2
3
4
5
6
Utility from Consumption
Pieces of
Cake
1
2
3
4
5
6
A
B
C
D
Total Utility from
Cups of Coffee
33
56
79
Total Utility from
Pieces of Cake
15
32
48
63
77
90
Total Utility of Different Consumption Bundles
Consumption Bundle Cups of Coffee Pieces of Cake Total Utility
3
0
2
2
1
4
0
6
Chapter 13 Solutions
Foundations of Economics (8th Edition)
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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