If Calvin has $26, he should eat ____ lbs oranges and ____ lbs of star fruit, and he will have _____ left over.

If Calvin buys 4 points of star fruit and 3 pounds of oranges, how much is his total utility?

If Calvin spends all of his money on oranges, how many pounds of oranges can he buy?

We stated that we typically think of marginal utility as being decreasing as the quantity of good or service consumed increases. Why do you think that is? (Hint: how happy would you be to consume your first cup of coffee? Your second cup of coffee? Your tenth cup of coffee?)

Pauli’s Pizza offers one slice for $2, two slices for $3.50, three slices for $4.50, and four slices for $5. Sal orders two slices. From this, we know that Sal’s marginal benefit from the second slice must be at least _____ and the marginal benefit from the third slice must be less than _____.

Denaro pays $8,000 per month in rent to operate a health club in Melbourne. He also pays $17,000 per month in wages, $3,000 per month in food and supplies, and $1,000 per month in insurance. All of his costs of production except his insurance and rent can change if he makes different decisions about his health club production. Denaro’s monthly sunk costs equal:

After earning your bachelor's degree, you have to decide whether to take a job that will pay you $45,000/year or spend an additional two years earning an MBA. If you decide to pursue the graduate degree, your annual expenses from tuition, books, board, and lodging will be $32,000. You have been offered a scholarship for $10,000/year, but to pay the remaining $22,000/year, you would have to cash in savings bonds from your grandparents that have been earning $500/year in interest. The annual opportunity cost of earning your MBA is:

In our example with Latoya, we determined that she would make a negative economic profit from starting her own business and thus she should not start her own business and stay in her job. We also said that when comparing two options, only one option will have a positive economic profit. Why is that? (Hint: work out Latoya's economic profit from staying in her job, and think about how the different elements of the calculations of economic profit for starting her own business and staying in her job interact).

What is the opportunity cost of going from point E to point F in terms of units of guns per units of butter? Include only the number with no other spaces or symbols.

The combination of guns and butter at point H: