--%>

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 : Economic Rent of Demand Curve When D 0

    When D0 is the initial demand curve for land in this illustrated figure, within equilibrium the economic rent realized through the landowner will be: (1) zero. (2) area Ocef. (3) area cae. (4) area Oaef. (5) a pure economic

  • Q : Changing effects of price of a product

    Increasing the price of a product will raise total revenue proportionally into the unlikely event which demand was: (1) perfectly price elastic. (2) relatively price elastic. (3) unitarily price elastic. (4) relatively price inelastic (5) perfectly price inelastic.

  • Q : Monopolistic competition firm in

    firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is this statement correct or incorrect? Explain.

  • Q : Marginal cost due to technology Due to

    Due to enhancement of technology, the marginal costs of televisions encompass vanished. How will it influence the supply curve of television? Answer: Supply curve w

  • Q : Problem relating to Changes in Demand

    Airlines considerably decreased the number of flights accessible in the year 2005, as compared to flight availability during the year 2000. Passenger mileage was fall. Economists would be least possible to ascribe the decline in airline ticket sales throughout the ear

  • Q : Import cars in equilibrium When the

    When the import car market is in equilibrium prior to the government limits car imports to Q1, the price that buyers will reimburse for an import: (1) Drops/falls from P0 to P1. (2) Is stable, although dealer gains fall by Q0 to Q1. (3) Increases from P0 to P2. (4) Ex

  • Q : Where is demand perfectly price

    For Pixie's cheesy fried grits demand is perfectly price inelastic at a price of: (w) P4. (x) P2. (y) 0. (z) None of the above.

    Q : Disadvantages of mixed economy system

    Tell me what are the disadvantages of mixed economy system?

  • Q : Profit maximization and maximization of

    Give the difference between corporate profit maximization and maximization of shareholder wealth?

  • Q : Occurrence of Adverse Selection When an

    When an NFL football team obscures information regarding damage to a former all-pro linebacker’s knees prior to trading him to the other team, the team which receives that player loses since of: (1) Immoral hazard. (2) Malfeasance. (3) Perverse selection. (4) Ad