Leo Consumes Only Apples and Bananas

question 3

Multiple Choice

Leo consumes only apples and bananas.He prefers more apples to fewer, but he gets tired of bananas.If he consumes fewer than 24 bananas per week, he thinks that 1 banana is a perfect substitute for 1 apple.But you would have to pay him 1 apple for each banana beyond 24 that he consumes.The indifference curve that passes through the consumption bundle with 31 apples and 36 bananas also passes through the bundle with A apples and 18 bananas, where A equals

• A)29.
• B)23.
• C)31.
• D)25.
• E)None of the above.

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Definitions:

Minimize Losses

Strategies or measures taken to reduce the extent of financial loss or to prevent future losses.

Total Cost

Total cost is the entire expense associated with the production of a set of goods or services, including both fixed and variable costs.

Output

The total amount of goods or services produced by an individual, firm, or country over a specific period.

Marginal Revenue Curve

A graphical representation showing how the addition of one more unit sold affects the total revenue of a firm.