If John's Marginal Utility Derived from the Consumption of Another

question 219

Multiple Choice

If John's marginal utility derived from the consumption of another candy bar is 1 and the price of the candy bar is $1.50, then

• A)this is the last candy bar John will purchase since the marginal utility is less than the price.
• B)the opportunity cost of the candy bar is less than $1.50.
• C)if John purchases and consumes the candy bar his total satisfaction will go down because the marginal utility is less than the price.
• D)there is not enough information to determine if John will or will not purchase the candy bar.

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Definitions:

Optimize Return

To make adjustments or take actions that maximize the benefits or profits gained from an investment or activity.

Dissociates

The act of separating or detaching oneself from a legal, business, or personal relationship.

Limited Liability Company

A legal entity where the owners are protected from personal liability for the debts of the company beyond their initial investment.

Agency

A legal relationship in which one party, known as the agent, is authorized to act on behalf of another, known as the principal, in dealing with third parties.