-Based on the Information in the Above Table, the Price

question 180

Multiple Choice

-Based on the information in the above table, the price of A is $3, the price of B is $2, and the price of C is $5. If Mary has $22 to spend, what combination of products A, B, and C should she buy in order to maximize her satisfaction?

• A) 3 units of product A; 3 units of product B; 1 unit of product C
• B) 2 units of product A; 3 units of product B; 2 units of product C
• C) 3 units of product A; 4 units of product B; 0 units of product C
• D) 2 units of product A; 1 unit of product B; 4 units of product C

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Definitions:

Franchise Arrangements

Agreements where one party (the franchisor) grants another party (the franchisee) the right to use its trademark or brand name and operate a business under its business model.

Exclusive Right

A legal provision granting someone the sole authority to undertake a particular activity or use a specific property.

Franchisor's Name

The legal name of the entity that grants the license to a franchisee for the conducting of a business under the franchisor's trademarks and business model.

Installment Sales Method

An accounting technique for recognizing revenue and expenses for sales made on credit, proportionate to the cash collected from the customer.