Sergio Is Maximizing Utility in His Consumption of Beer and Bubble

question 115

Multiple Choice

Sergio is maximizing utility in his consumption of beer and bubble gum.If the price of beer is greater than the price of bubble gum,then we know

• A)Sergio buys more beer than bubble gum.
• B)Sergio buys more bubble gum than beer.
• C)the marginal utility from the last purchased beer is greater than the marginal utility from the last purchased bubble gum.
• D)the marginal utility from the last purchased bubble gum is greater than the marginal utility from the last purchased beer.
• E)the marginal utilities from the last purchased beer and bubble gum are equal.

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Definitions:

Provide Services

The act of performing tasks or duties for clients or customers, often in exchange for payment, that does not result in the production of physical goods.

Double-Declining-Balance Method

A form of accelerated depreciation where an asset loses value at twice the rate of the traditional straight-line method.

Depreciation

Methodically dividing the cost of a tangible asset throughout its effective life.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, after it has been fully depreciated.