Assume the Price of Cola Is $8 Per Unit and the Price

question 100

Multiple Choice

Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Table 19.3
Michael's Utility Schedule
$\begin{array} { | c | r | c | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Cola }\end{array} & \text { TU of Cola } & \begin{array} { c } \text { MU of } \\\text { Cola }\end{array} & \begin{array} { c } \text { Units of } \\\text { Pretzels }\end{array} & \begin{array} { c } \text { TU of } \\\text { Pretzels }\end{array} & \begin{array} { c } \text { MU of } \\\text { Pretzels }\end{array} \\\hline 1 & 46 & 40 & 1 & 30 & 30 \\\hline 2 & & 32 & 2 & & 20 \\\hline 3 & 96 & 24 & 3 & 66 & 16 \\\hline 4 & 112 & & 4 & 78 & \\\hline 5 & 124 & & 5 & 84 & \\\hline\end{array}$ Refer to Table 19.3.Suppose Michael has $28 to spend on cola and pretzels.What combination should he purchase in order to maximize his utility?

• A)Three colas and four pretzels.
• B)One cola and five pretzels.
• C)Three colas and one pretzel.
• D)Two colas and three pretzels.

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Definitions:

Self-Serving Attributions

A common tendency for individuals to attribute their successes to internal factors while attributing failures to external factors.

Moral Dilemmas

Moral dilemmas are situations in which an individual faces a choice between two or more morally conflicting courses of action, with no clear right or wrong answers.

Tit For Tat

A strategy in game theory where an agent responds to a competitor's previous move with an identical action, often used as a model for the evolution of cooperative behavior.

Fundamental Attribution Error

The tendency to overestimate the role of personal characteristics and underestimate the situational factors when explaining others' behaviors.