Pizza and pepsi are complements. suppose that at current consumption level of 4 pizzas and 3 pepsis, an individual’s marginal utility of consuming an extra pizza is 12 whereas the marginal utility of consuming an extra pepsi is 3. then the mrs of pepsi for pizza (that is, the number of pizzas the individual is willing to give up to get one more pepsi)
(a) 3 (b) 4 (c) 1/3 (d) 1/4 ?

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.