Bobby Consumes Only Chocolate Ice Cream and Vanilla Ice Cream

question 334

Multiple Choice

Bobby consumes only chocolate ice cream and vanilla ice cream. He is spending all of his income. His marginal utility of chocolate is 200 and his marginal utility of vanilla is 100, and the price of chocolate is $2.00 per scoop and the price of vanilla is $1.00 per scoop. Bobby has maximized his

• A) marginal utility of chocolate ice cream.
• B) marginal utility of vanilla ice cream.
• C) marginal utilities of chocolate ice cream and vanilla ice cream.
• D) maximized his total utility.

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Definitions:

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A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger people with disabilities.

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A social health care program for families and individuals with low income and resources.

Medicare

A federal program providing health insurance to people over 65 and to certain younger people with disabilities, funded by payroll taxes, premiums, and the federal government.

Baby Boom Generation

Refers to the demographic cohort born approximately between 1946 and 1964, experiencing a marked increase in birth rates post-World War II.