Suppose the MB of consuming your 4th pineapple is $15, and the MC of the 4th pineapple is $5. The MB of the 3rd pineapple is $35 and the MC of the 3rd pineapple is $5. Which of the following is true?
A). You should definitely consume the 3rd and 4th pineapples because your total net benefit would increase.
B). You should definitely consume the 3rd pineapple because your MNB is $30, but you should not consume the 4th pineapple because your MNB is only $10, which is lower than the 3rd pineapple.
C). You should not consume either the 3rd or the 4th pineapple because your Total Net Benefit would not be maximized
D). None of the above is correct
Suppose the MB of consuming your 4th pineapple is $15, and the MC of the 4th pineapple is $5. The MB of the 3rd pineapple is $35 and the MC of the 3rd pineapple is $5. Which of the following is true?
A). You should definitely consume the 3rd and 4th pineapples because your total net benefit would increase.
B). You should definitely consume the 3rd pineapple because your MNB is $30, but you should not consume the 4th pineapple because your MNB is only $10, which is lower than the 3rd pineapple.
C). You should not consume either the 3rd or the 4th pineapple because your Total Net Benefit would not be maximized
D). None of the above is correct
Related textbook solutions
Related questions
|
Person |
Judy |
Sandy |
Dee |
Shawntae |
Martha |
|
Income |
$40,000 |
$75,000 |
$85,000 |
$35,000 |
$110,000 |
The above table lists the incomes for the 5 people who live on the remote island nation of Richland.
1. Refer to Table 21.1. If Martha's income doubled to $220,000 while the incomes of the other four residents did not change, what would happen to the original median income onâ Richlandia?
A.It would increase by $22,000.
B.It would increase by $44,000.
C.It would not change.
D.It would double.
2.When we compare shares of income earned by U.S. households over the past 40 years, which of the following statements about the distribution of income isâ true?
A.The percentage of total income represented by each quintile has decreased.
B.Lower income households gained at the expense of higher-income households.
C.The largest gain in income percentage is in the top 5% of households.
D.The percentage of total income represented by each quintile has increased.
3.From 1970 to 2012, the Gini coefficient in the United States has
A.dramatically decreased.
B.remained is relatively unchanged.
C.steadily increased.
D.more than doubled.
4.Income distribution in the United States over the past 40 years has become more equal.
True
False
5.Income inequality in the United States has increased in part due to technological change. How does technological change contribute to incomeâ inequality?
A.It is responsible for a majority of new products on the market, and these products are only affordable to higher-income households.
B.It reduces the cost of producing goods and therefore lowers the value of labor services.
C.It allows manufacturers to produce products with lessâ labor, and this reduction in the demand for labor lowers wages at all skill levels.
D.It has created many higher-income jobs for skilled and trainedâ workers, leaving the income of less-skilled workers relatively unchanged by comparison.
6.Income inequality in the United States has increased in part due to globalization. How does globalization contribute to incomeâinequality?
A.It allows domestic firms to hire low skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of low skilled workers to fall relative to the wages of other workers.
B.It increases the demand for a wide variety of products which in turn increases prices beyond the reach of average income
households.
C.It allows producers to exploit workers and reduce the wages they are willing to pay those workers.
D.It reduces the cost of producing goods and therefore lowers the value of labor services.
7.Rachel, a large pineapple producer in Hawaii, lobbies Congress to limit imports of pineapples to be able to sell her pineapples at a higher price and greatly increase her income. This possible source of income inequality is due to
A.technology changes.
B.rent seeking.
C.globalization.
D.productivity differences.
8.If growing income inequality results from changes in technology that, as a whole, make society better off, this will
A.decrease the size of the economic pie because of income inequality.
B.increase the size of the economic pie.
C.not change the size of the economic pie because the positive technology changes will be offset by the increases in income inequality.
D.result incomplete income inequality as technology continues to change in the future.
9.The belief that having more of something makes you happier but in successively smaller increments is called
A.utilitarianism.
B.diminishing marginal utility.
C.the benefits received principle.
D.transcendentalism.
10.The results of a survey conducted by Dan Ariely and Michael Norton found that Americans
A.show absolutely no preference for the amount of equality in wealth distribution in the nation.
B.have a preference for much less equality in wealth distribution than currently exists.
C.have a preference for roughly the amount of equality in wealth distribution that currently exists.
D.have a preference for much greater equality in wealth distribution than currently exists.
11.In the United States, the highest quintile of income earners contribute ________ of all federal tax dollars received, and the lowest quintile of income earners contribute ________ of all federal tax dollars received
A. 24%; 1.5%
B. 20%; 20%
C. 68.8%; 0.4%
D. 29.4%; 11.5%
12.The question "Is the U.S tax system disproportionate enough?" is a ________ question, and the question "How would higher taxes make the rich behave?" is a ________ question.
A. normative; positive
B. positive; normative
C. positive; positive
D. normative; normative
The table shows the maximum amount of money you would be willing to pay for increasing numbers of veggie sushi pieces at Oishii Sushi:
|
Sushi Pieces |
Maximum Payment |
|
1 |
$2.00 |
|
2 |
3.80 |
|
3 |
5.40 |
|
4 |
6.80 |
|
5 |
8.00 |
|
6 |
9.00 |
|
7 |
9.80 |
|
8 |
10.40 |
|
9 |
10.80 |
|
10 |
11.00 |
|
11 |
11.00 |
Find the marginal utility for each sushi piece. What is the meaning of the marginal utility of the 11th piece?
If the price of sushi pieces is $1.25 each, how many will you buy?
If the price falls to $.50, how many will you buy? Explain why you will not buy one more.
Suppose Oishii stops selling sushi pieces individually, and only sells them in rolls, each containing 5 pieces. The price of a roll is $2.50. How many total sushi pieces will you consume? Reconcile your answers to c) and b).
What is the consumer surplus, or net benefit, that you get from purchasing sushi pieces at $.50 as in c)?
