Figure 6.6 -Refer to Figure 6.6.If the Price of Biscotti Is $1.50

question 180

Multiple Choice

Figure 6.6
-Refer to Figure 6.6.If the price of biscotti is $1.50 and the price of a cappuccino is $3.00, what is the slope of the budget constraint?

• A)-2
• B)-(3.00 - 1.50)/(3.00 + 1.50)= -1/3
• C)-1/2
• D)The slope cannot be determined without the value of income.

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Definitions:

Marginal Cost

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

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