Suppose That Utility-Maximizing Consumers in San Francisco Pay Three Times

question 5

Multiple Choice

Suppose that utility-maximizing consumers in San Francisco pay three times as much for apples as for peaches.What is the ratio of the marginal utility of apples to the marginal utility of peaches?

• A)1/3
• B)2/3
• C)3
• D)none of the above
• E)cannot determine without further information

---

Definitions:

Earnings Per Share

A company's profit divided by its number of outstanding shares, indicating the profitability of the company on a per-share basis.

Net Income

The profit a company reports after all operational expenses and tax obligations are subtracted from its revenue.

Cash Flow

The total interchange of cash and assets comparable to cash, circulating in and out of a commercial venture.