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D Question 24 1 pts Lewis has a fixed budget and buys all of the items listed be

ID: 1128936 • Letter: D

Question

D Question 24 1 pts Lewis has a fixed budget and buys all of the items listed below. When will a 20 percent reduction in price cause him to change the amount he buys the most? D scented candles, regular price is $25 jasmine rice, regular price is $4/b D GAP jeans, regular price is $75 D flat-screen LCD TV, regular price is $400 D living room couch, regular price is $300 1 pts DQuestion 25 At any quantity, when the marginal benefit equals the marginal cost, that quantity is said to be excessive. C inadequate. D optimal. O equivalent 0 allocated.

Explanation / Answer

24. Incomplete information.

25. Optimal

When the marginal cost of producing an output is equal to the marginal benefit obtained from it, an optimal quantity of the product is achieved.

At any point above or below this point marginal cost is not equal to marginal benefit.