At Her Current Consumption Level,Betty Gets Twice as Much Marginal

question 89

Multiple Choice

At her current consumption level,Betty gets twice as much marginal utility from an additional bottle of soda as she does from an additional bottle of water.If she is maximizing her utility,and the price of soda is $2 per bottle then the price of a bottle of water must be:

• A)$8.00.
• B)$1.00.
• C)$2.00.
• D)$4.00.

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Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, borrowing, and repaying debt.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's assets and earnings.

Cash Dividends

Cash dividends are payments made by a corporation to its shareholders, usually as a distribution of profits.

Financing Activities

Transactions involving the inflow or outflow of funds related to a company's financing, such as issuing debt or equity.