Nathalie Is Maximizing Total Utility While Consuming Food and Clothing

question 21

Multiple Choice

Nathalie is maximizing total utility while consuming food and clothing. Her marginal utility from food and clothing is 50 and 25, respectively. If clothing is priced at €10 per unit, the price of food must

• A) be rising.
• B) be falling.
• C) equal €10 as well.
• D) equal €20.

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Definitions:

Distribution

Distribution involves the process of making goods or services available for use or consumption by consumers or businesses.

National Cooperative Research Act

Legislation that enables companies to collaborate on research and development efforts without immediately being subject to antitrust laws.

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Business arrangements where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

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The systematic investigation and innovation aimed at the discovery and application of new knowledge, typically to create new products or improve existing ones.