Kathleen Likes Avocado and Crab Dip

question 195

Multiple Choice

Kathleen likes avocado and crab dip. After eating avocado and crab dip with four crackers, she switches to cheese with crackers. We can conclude that

• A) the avocado and crab dip cannot have tasted that good.
• B) the avocado and crab dip with crackers now has a marginal utility of zero.
• C) at this point cheese and crackers have a higher marginal utility per dollar spent than that of avocado and crab dip with crackers.
• D) Kathleen is no longer maximizing her utility.

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Definitions:

Income

The financial return received by an individual or entity in exchange for providing goods, services, or through investing capital, including wages, profits, and rents.

Upper Quintiles

Refers to the top 20% of the population in terms of income distribution, often used in studies of social, economic, and wealth stratification.

Income

The income earned, particularly in consistent intervals, from employment or investment returns.

Upper Quintile

Refers to the top 20 percent of the population or distribution in terms of income, wealth, or another statistical measure.