Imagine a consumer who enjoys coffee and cream, which are al…

Imagine a consumer who enjoys coffee and cream, which are always used together in fixed proportions. This consumer always consumes one unit of cream for each cup of coffee to fully enjoy the combination. Prices and Budget:Price of coffee (per cup): $3Price of cream (per unit): $1Monthly budget for coffee and cream: $120 Given the fixed consumption pattern and budget, what is the ideal monthly purchase plan for coffee and cream to maximize enjoyment?

Suppose in the widget industry each firm has the cost struct…

Suppose in the widget industry each firm has the cost structure illustrated in the left graph below.  The right graph illustrates two different possible demand curves, D1 and D2.  The next seven questions will use this graph. The first question with the graph is this.  Using the graph, we can determine that fixed cost equals _____.