Refer to the Information Provided in Figure 6

question 25

Multiple Choice

Refer to the information provided in Figure 6.15 below to answer the question that follows. Figure 6.15
-Refer to Figure 6.15. Why was Jason not maximizing his utility at point C?

• A) He is not spending his entire budget.
• B) His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog.
• C) His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog.
• D) He is maximizing his utility at point C.

---

Definitions:

Curvilinear Cost

A cost behavior pattern where costs increase with activity, but not at a constant rate, often depicted as a curved line on a graph.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.