Assume Amanda Always Maximizes Her Total Utility Given Her Budget

question 16

Multiple Choice

Assume Amanda always maximizes her total utility given her budget constraint.Every morning for breakfast she has two eggs and three sausages.If the marginal utility of the last egg is 10 utils and the price of eggs is $1 each,what can we say about the marginal utility of the last sausage if the price of each sausage is $2?

• A)It must be equal to 20 utils.
• B)It must be equal to 10 utils.
• C)It must be equal to 5 utils.
• D)It must be equal to 1 utils.

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Definitions:

Psychological Origin

Refers to the underlying psychological factors or conditions that contribute to the development of behaviors, thoughts, or emotions.

Divine Madness

A state of being believed to be inspired by divine forces, often associated with creativity or religious ecstasy.

Prophetic Gifts

Spiritual endowments in some religious traditions that enable individuals to receive and communicate messages from the divine or supernatural realm.

Bodily Humors

An ancient and obsolete medical theory that believed human health and temperament were governed by four fluids in the body: blood, phlegm, black bile, and yellow bile.