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Please answer the following short answer questions. Be as complete and concise as possible. Use this information to answer questions 1 through 3: Jon has
Please answer the following short answer questions. Be as complete and concise as possible.
Use this information to answer questions 1 through 3: Jon has a weekly budget of $20, which he likes to spend on bagels and cups of tea. The price of a bagel is $4 each and the price of a cup of tea is $2 each.
- What is the maximum number of bagels he could buy in a week?
- What is the maximum number of cups of tea he could buy in a week?
- What is Jon's opportunity cost of purchasing a bagel?
- You are drinking bottles of water on a very hot day. Use the law of diminishing marginal utility to explain why you would eventually stop drinking water.
- How does the essay and video clip "I, Pencil" support Adam Smith's concept of The Invisible Hand?
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