1. Any consumer trying to decide whether to buy a given good or service will base the decision on his or her reservation price and the existing market price. When making this decision, the buyer's reservation price measures the a. marginal cost: the cost of production. b. marginal cost: the lowest amount the buyer is willing to pay for a product. c. marginal benefit: the highest price that a buyer is willing to pay for a product. d. marginal benefit: the value of the resources used in production. 2. The market price measures the a. marginal benefit: the value of the resources used in production. b. marginal cost: the cost of production. c. marginal cost: the amount that buyer will actually have to pay. d. marginal cost: what the buyer is willing to pay- 3. The consumer will purchase the good or service only if the buyer's reservation price is a. higher than the market price. b. equal to or higher than the market price. c. lower than the market price. d. equal to the market price. 4. Zander has a weekly allowance of $24, all of which he spends on pizza and movie rentals, whose prices are $6 per slice and $3 per rental, respectively. We can assume that pizza slices and movie rentals are available only in whole-number amounts. a. For the given levels of pizza consumption, calculate how many rentals Zander can afford with his remaining income. Pizza Rentals 0 1 2 b. Using the utility values in the table below, fill in the table. Pizza Utils/week Mu from MU/Price rentals Utils/week Marginal MU/Price slice per from pizza pizza per from utility from week week rentals rentals 0 0 O 1 20 1 40 2 36 2 46 3 48 3 50 4 58 4 54 5 66 5 56 72 6 57 76 57 8 78 57