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Unformatted text preview: 8. Suppose that the ingredients required to bring a slice of pizza to market and their respective costs are: paper plate, 2 cents, flour 8 cents, tomato sauce 20 cents, cheese 30 cents, and labor 60 cents (3 minutes @ $12/hour). If these proportions remain the same no matter how many slices are made, and the inputs can be purchased in any quantities at these stated prices, draw the supply curve of pizza slices and compute its price elasticity. Chapter 5 2. You are having lunch at an all-you-can-eat buffet. If you are rational, what should be your marginal utility from the last morsel of food you swallow?...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08