Assume That Dusty Has $30 in Income,the Price of a Loaf

question 39

Multiple Choice

Assume that Dusty has $30 in income,the price of a loaf of bread is $1.50,and the price of a jar of peanut butter is $3.
Suppose that at the original income of $30 the price of a loaf of bread increased to $3.00 and the price of a jar of peanut butter decreased to $2.Dusty can buy a maximum of _____ loaves of bread or a maximum of _____ jars of peanut butter.

• A)10,15
• B)15,10
• C)20,15
• D)15,20

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, giving a per unit cost of production.

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a good or service, often varying with the level of production.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.