Christine Has Purchased Five Bananas and Is Considering the Purchase

question 103

Multiple Choice

Christine has purchased five bananas and is considering the purchase of a sixth.It is likely she will purchase the sixth banana if

• A)the marginal value she gets from the sixth banana is lower than its price.
• B)the marginal benefit of the sixth banana exceeds its price.
• C)the average value of the sixth bananas exceeds the price.
• D)the total personal value of six bananas exceeds the total expenditure to purchase six bananas.

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Definitions:

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Face Value

The nominal value or dollar value printed on a bond, stock, or other financial instrument, indicating its worth at maturity.

Bonds Issued

Long-term debt securities sold by a corporation or government to investors to raise capital, with the obligation to pay interest and repay principal at a specified date.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock, representing its official worth.