Use the Following for Questions 61-69

question 236

Multiple Choice

Use the following for questions 61-69.

-(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $5 per unit, the price of good Y is $1 per unit, and you have $10 of income to spend on both goods.To maximize utility, you would consume _______ units of X and _______ units of Y.

• A) 0; 1
• B) 1; 5
• C) 4; 6
• D) 5; 5

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Definitions:

Obligations

Duties or responsibilities imposed by legal or ethical requirements, contracts, or agreements.

LBO

Leveraged buyout. A process in which an investor group buys up a company’s stock using a small amount of equity and borrowing the rest of the money required. The debt is often secured by the firm’s assets. The investor groups are often the firms’ managements, and the company goes from being publicly held to being privately held.

Takeover

The acquisition of one company by another where the acquiring party secures control of the target company.

Merger

The combination of two or more companies into a single entity, often with the goal of achieving operational synergies or market growth.