19) Refer to Table 6-1. If the prices of toffee bars and bags of cashews are both $1 and this consumer has $7 per week to spend on these two snacks, how many of each will he/she purchase to maximize utility? A) 2 toffee bars and 5 bags of cashews B) 3 toffee bars and 4 bags of cashews C) 4 toffee bars and 3 bags of cashews D) 5 toffee bars and 2 bags of cashews E) 6 toffee bars and 1 bag of cashews
Related textbook solutions
Related questions
The table below contains information on three techniques for producing $15 worth of bar soap. Assume â$17.50 worth of bar soapâ means the selling price of soap is $3.50 per bar and all three techniques produce 5 bars of soap ($17.50 = $3.50 per bar à 5 bars). So you know each technique produces 5 bars of soap
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. What technique will you want to use if the price of a bar of soap falls to $3.25? (Click to select)Technique 1Technique 2Technique 3.
What if the price of a bar of soap rises to $4.75? (Click to select)Technique 1Technique 2Technique 3.
What if the price of a bar of soap rises to $5.75? (Click to select)Technique 1Technique 2Technique 3
b. How many bars of soap will you want to produce if the price of a bar of soap falls to $2.45?
| Zero: It is not profitable to produce bars of soap at this selling price | |
| Five: It is profitable to produce bars of soap at this selling price |
c. Suppose that the price of soap is again $3.50 per bar but that the cost of all four resources are now $1.3 per unit. Which is now the least-profitable technique? (Click to select)Technique 1Technique 2Technique 3.
d. If the resource prices return to their original levels (the ones shown in the table), but a new technique is invented that can produce 2.57 bars of soap using 1 unit of each of the four resources, will firms prefer the new technique?
