Suppose Caesar Allocates His Entire Budget to the Purchase of Soft

question 109

Multiple Choice

Suppose Caesar allocates his entire budget to the purchase of soft drinks and chips.The marginal utility of the last bottle of soft drink purchased is 12 utils,and each bottle costs $1.20.The marginal utility of the last bag of chips purchased is 8 utils,and each bag costs $1.In order to maximize his utility,Caesar should

• A)Buy more soft drinks and fewer chips since he gets more marginal utility per dollar from soft drinks.
• B)Buy more chips and fewer soft drinks because of the lower price for chips.
• C)Buy more soft drinks and fewer chips because the soft drink has fewer calories.

---

Definitions:

Salary

A set amount of money or compensation paid to an employee by an employer in return for work performed, typically expressed on an annual basis.

Workforce Diversity

Differences among recruits and employees in characteristics such as gender, race, age, religion, cultural background, physical ability, or sexual orientation.

Age

A measure of the time since an individual or object has existed, typically expressed in years.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, including social and cultural identities.