Suppose That for Jim the Marginal Benefit (MB)of Producing Is

question 1

Multiple Choice

Suppose that for Jim the marginal benefit (MB) of producing is $60 and that the marginal cost (MC) of producing is $10.Suppose also that his marginal benefit of stealing is $50 and the marginal cost of stealing is $10.Is Jim currently maximizing utility in terms of producing and stealing? If not,should he produce more and steal less,or produce less and steal more to move toward utility maximization?

• A) Yes,Jim is maximizing utility.
• B) No,Jim is not maximizing utility.Since the MB/MC ratio for producing is less than the MB/MC ratio for stealing,Jim should produce more and steal less.
• C) No,Jim is not maximizing utility.Since the MB/MC ratio for producing is greater than the MB/MC ratio for stealing,Jim should produce more and steal less.
• D) No,Jim is not maximizing utility.Since the MB/MC ratio for producing is greater than the MB/MC ratio for stealing,Jim should steal more and produce less.

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Definitions:

Binding Arbitration

A legal process where a dispute is resolved by an impartial third party, whose decision is final and binding.

Member-managed LLC

A limited liability company where all members participate in the decision-making processes of the business.

Dispute

A disagreement, conflict, or controversy, often requiring resolution through legal processes.

Proxy Voting

The process by which a shareholder delegates their voting power to a representative, allowing them to vote at corporate meetings in their absence.