FRQ solutions for practice questions

1 a) neither because the same number of units can be produced by both

b) Teckana because their opportunity cost is lower

c) yes.  Teckana could only get 4 clothing for 1 food before trade but now gets 5.  Marland used to give up 6 clothing for 1 food but only has to give up 5 with trade.

d)

2) a) no, not possible, not enough income

b) 4 snacks and 3 movies; marginal utility per dollar on last unit of each bought is 2.4

c) 174 utils by adding up the marginal utilities

d) 1. no effect on marginal utility per dollar

2. 1 more movie ticket because it increases her total utility more

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