Angie Is Maximizing Total Utility While Consuming Food and Clothing

question 451

Multiple Choice

Angie is maximizing total utility while consuming food and clothing.Her marginal utility from food is 50,and her marginal utility from clothing is 25.If clothing is priced at $10 per unit,the price of food per unit must be

• A) $2.
• B) $2.50.
• C) $5.
• D) $20.

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Definitions:

Estimated Uncollectible Accounts

An accounting provision for debts that are anticipated to be uncollectable from customers or clients.

Direct Write-off Method

An accounting approach where uncollectable accounts receivable are directly written off against income at the time they are deemed to be uncollectible.

Generally Accepted Accounting Principles

A set of rules, standards, and practices used by accountants in the U.S. to prepare, present, and report financial statements.

Bad Debt Losses

Financial losses resulting from customers' inability to pay back money owed.