Daisy Is Consuming X and Y So That She Is

question 97

Multiple Choice

Daisy is consuming X and Y so that she is spending her entire income and MU_x/P_x = 12 and MU_y/P_y = 10. To maximize utility, she should

• A) continue to consume the same amount of X and Y since she is already maximizing utility.
• B) consume less of both X and Y.
• C) consume more X and less Y.
• D) consume less X and more Y.

---

Definitions:

Equivalent Units

A method used in managerial accounting to calculate the number of complete units that could have been produced given the total amount of materials and effort expended.

Production Period

The Production Period is the phase in a manufacturing process when resources are used to convert raw materials into finished products.

Output

The quantity of goods or services produced in a given time period by a company, industry, or country.

Job Order Cost System

An accounting system that accumulates manufacturing costs separately for each order, suitable for businesses producing customized products or offering specialized services.