Scenario 4.1: Daniel Derives Utility from Only Two Goods, Cake (Qc) and (Qc)

question 41

Multiple Choice

Scenario 4.1:
Daniel derives utility from only two goods, cake (Qc) and donuts (Qd) . The marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given as follows:
MUc = Qd MUd = Qc
Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3.
-See Scenario 4.1. What quantity Qc will maximize Daniel's utility given the information above?

• A) 0
• B) 24
• C) 40
• D) 60
• E) none of the above

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Definitions:

Sleeper Effects

Delayed impacts of a message that become more persuasive or influential after some time has passed.

Visual Proprioception

The visual feedback that one gets from moving around, linked to the development of wariness of heights in infancy.

Pincer Grasp

The coordination of the thumb and forefinger to hold objects, a key milestone in fine motor skills development.

Fine Motor Skills

Skills involving the small muscles of the hands and fingers, such as writing, typing, or buttoning clothes.