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

question 2

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
$\begin{array} { | c | r | c | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Cola }\end{array} & \text { TU of Cola } & \begin{array} { c } \text { MU of } \\\text { Cola }\end{array} & \begin{array} { c } \text { Units of } \\\text { Pretzels }\end{array} & \begin{array} { c } \text { TU of } \\\text { Pretzels }\end{array} & \begin{array} { c } \text { MU of } \\\text { Pretzels }\end{array} \\\hline 1 & 46 & 40 & 1 & 30 & 30 \\\hline 2 & & 32 & 2 & & 20 \\\hline 3 & 96 & 24 & 3 & 66 & 16 \\\hline 4 & 112 & & 4 & 78 & \\\hline 5 & 124 & & 5 & 84 & \\\hline\end{array}$ In Table 19.3 the marginal utility per dollar of the second cola is

• A)10.
• B)6.
• C)4.
• D)12.

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Definitions:

Distributive Negotiation

A negotiation approach focusing on dividing a fixed amount of resources, often resulting in a win-lose scenario.

Win-Win Situation

A scenario in which all parties involved gain or achieve their objectives.

Mutual Problem Solving

A collaborative approach where involved parties work together to find solutions to their common issues.

Environmental Events

Occurrences within the environment that can impact the operations and success of organizations or individuals.