Christopher Owns and Manages a Small Tea Shop

question 533

Multiple Choice

Christopher owns and manages a small tea shop. We assume that Christopher
(i) does not directly care about the quantity of tea that he sells.
(ii) does not directly care about the number of workers that he hires.
(iii) wants to maximize the quantity of tea that he sells.
(iv) wants to minimize the number of workers that he hires.
(v) wants to maximize profits.

• A)(i) and (ii) only
• B)(i), (ii), and (v) only
• C)(iii) and (iv) only
• D)(iii), (iv), and (v) only

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Definitions:

Price of Y

This generally refers to the cost required to purchase a specific item or commodity denoted as "Y".

Income

Funds acquired regularly as a result of work or investment ventures.

Utility Function

Represents a consumer's preferences in a way that the utility or satisfaction they get from various goods or services can be measured and compared.

Budget Constraint

A limitation on the consumption choices of individuals or households, based on their income and the prices of goods and services.