If a Consumer Purchases a Combination of Commodities X and Y

question 234

Multiple Choice

If a consumer purchases a combination of commodities x and y such that MU_x/P_x = 30 and MU_y/P_y = 40, to maximize utility, the consumers should buy.

• A) less of x and more of y.
• B) more of x and less of y.
• C) more of both x and y.
• D) less of both x and y.

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Definitions:

Operating Loss

A financial situation where a company's operating expenses exceed its gross profits.

Discontinued Operations

Components of a business—such as segments or subsidiaries—that have been disposed of or are held for sale, and are reported separately in financial statements for clearer assessment by investors.

Loss on Disposal

Loss on disposal occurs when the proceeds from the sale of an asset are less than its carrying amount on the books, resulting in a financial loss.

Bad Debt Expense

An expense reported on the income statement, representing the amount of uncollected receivables from customers during a period.