--%>

Marginal utilities for additional good

When each ice cream cones cost $2 and fried grits are of $4 per pound and your marginal utilities from an additional cone or an additional pound of fried grits per month are each of 40 utils, then, given your present budget, you: (1) Are presently maximizing your satisfaction. (2) Can profit by purchasing more cones and less fried grits. (3) Would purchase more fried grits and fewer cones when you inherited some money. (4) Can profit by eating more fried grits and less ice-cream.

Can someone help me in getting through this problem.

   Related Questions in Microeconomics

  • Q : Average retail price and Consumer Price

    Answer the question based on given table of average retail price of milk and the Consumer Price Index from the year 1980 to 1998.

    Q : Collapse of Cartels A purpose NOT often

    A purpose NOT often cited for the collapse of cartels would be: (w) price cheating. (x) inability to deter entry. (y) government prosecution. (z) merger into monopoly. Hey friends please give your opinion for the p

  • Q : Short-run equilibrium of purely

    At the price P1, the given figure of purely competitive cranberry industry is within: (w) long-run equilibrium. (x) short-run equilibrium. (y) market period disequilibrium. (z) short-run disequilibrium. <

  • Q : Creating unhealthy dependency by

    According to several critics who favor reducing welfare payments, and existing welfare programs as: (1) cannot cure poverty without substantial funding hikes. (2) are justified only when they increase total production. (3) harm poor people by creating

  • Q : Elasticity and demand of monopolist

    When a monopolist produces output where demand is unitarily elastic, in that case marginal revenue equals: (1) price. (2) infinity. (3) negative infinity. (4) one. (5) zero. I need a good answer on the topic of

  • Q : Firms demand for labor Assume that the

    Assume that the international auto industry has become monopolistically competitive and you run a small automaker. The events which would not directly influence your firm’s demand for labor comprise: (i) Sales of your company’s most admired car unexpectedl

  • Q : Numerical question regarding demand At

    At $1.50 per gallon, Alana purchases 50 gallons of gasoline weekly, Bart purchases 20 gallons weekly, and Caitlin purchases 20 gallons weekly. One point on their joint demand curve for gasoline would be Q =: (1) 90 gallons per week, P = $1.50. (2) 90 gallons per week,

  • Q : Resolving principal-agent problems I

    I have a problem in economics on Resolving principal-agent problems. Please help me in the following question. Attempts to resolve the principal-agent problems among stockholders and top corporate managers (that is, CEOs) comprise: (i) Profit-sharing systems for the t

  • Q : Monopoly a monopolist has two plants

    a monopolist has two plants with two different cost functions.given output for one plantis given how do calculate output for the other plant?

  • Q : Opportunity Costs to Society of Funding

    The clearest signals of the opportunity costs to society of funding one investment in place of another are relative: (w) interest rates, expected rates of return, and also expected economic profit. (x) production costs for various goo