***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

Amalya wants to buy packages of almonds and Brazil nuts.  Her original budget line is line 1.  Line 2 shows what her new budget line could possibly look like if her income decreases, the price of almonds decreases, and the price of Brazil nuts remains unchanged.

Natalia wants to buy honey and peanut butter.  She has $108 to spend.  Honey costs $9 per jar and peanut butter costs $4.50 per jar.  The following table shows the total utility she will derive from each good at the different quantities she can afford.

Which would be her optimal bundle?

Just enter the letter of the bundle.

Roman is buying tennis balls and golf balls.  He has a monthly budget of $28.

Based on the budget line below, what is the price per tennis ball?

The table below shows the total revenue information for a firm that sells strawberries.

What is the price per unit of strawberries?

When a firm has a negative accounting profit:

Andy has $328,000 in savings and the interest rate is 2%.  He is considering quitting his job, moving

to Hawaii, and buying a vacation property where he would live and rent

accommodations to tourists.  His job pays

him $61,000 per year.  He estimates that,

in Hawaii, his annual revenue would be $177,000; and costs of utilities, wages,

insurance, and maintenance of the property would be $21,400 per year.  He would have to use $290,000 of his savings to purchase the property.  What would be Andy’s

economic profit for the business in Hawaii?

***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

The table below shows the total cost (TC), marginal cost (MC), total revenue (TR), and marginal revenue (MR) for a firm.

What is the optimal quantity for the firm?