​Suppose an Individual Knows That the Marginal Utility He Receives

question 116

Multiple Choice

​Suppose an individual knows that the marginal utility he receives from the next apple is 5 and that the price of an apple is $2. He also knows that the marginal utility he receives from the next orange is 3 and the price of an orange is $1. If the individual is choosing optimally, the next good he will buy is

• A)​an orange because the marginal utility per dollar spent on an orange is greater.
• B)​an orange because the marginal utility of the orange is greater.
• C)​an apple because the marginal utility per dollar spent on an apple is greater.
• D)​an apple because the marginal utility of the apple is greater.

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Definitions:

Distinctive Competencies

Unique abilities or characteristics of an organization that provide a competitive advantage and can't be easily replicated by competitors.

Internal Fit

The alignment between an organization's strategy, processes, and structures to ensure optimal performance and efficiency.

Differentiation Strategy

A business approach where a company offers unique products or services to stand out from its competitors.

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The process of defining a strategy or direction, and making decisions on allocating resources to pursue this strategy.