For Questions Assume That an Individual Consumes Two Goods

question 17

Multiple Choice

For questions assume that an individual consumes two goods X and Y. The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $5 and $10.

$\begin{array}{lcc}\text { Units of the Good } & \text { TotalUtility of } X & \text { Total Utility of } Y \\1 & 50 & 400 \\2 & 95 & 750 \\3 & 135 & 950 \\4 & 170 & 1100 \\5 & 200 & 1220 \\6 & 225 & 1320 \\7 & 245 & 1400 \\8 & 260 & 1450\end{array}$
-If the consumer buys the third unit of Y,

• A) the marginal utility of the third unit is 950 units of satisfaction.
• B) the marginal utility per dollar spent on Y is 200.
• C) the marginal utility per dollar spent on Y is 20.
• D) both a and B

Recognizing the importance of establishing criteria before evaluating options in the negotiation process.

Identifying effective guidelines for evaluating options and reaching a consensus in negotiations.

Understand the factors that inhibit or foster creativity and ideas within groups.

Comprehend the principles for developing effective goals in problem-solving scenarios.

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Definitions:

Marketable Securities

Financial instruments that can easily be sold or converted into cash at a value close to their market rate.

Precautionary Demand

Precautionary demand refers to the desire to hold cash or easily liquidatable assets to safeguard against unexpected financial needs or market fluctuations.

Unexpected Opportunities

Situations or prospects that arise unexpectedly, offering potential benefits or advantages not initially planned for.

Cash Conversion Cycle

A metric that shows the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.