Table 21-2
a Consumer Likes Two Goods: Pizza and Beer

question 94

Multiple Choice

Table 21-2
A consumer likes two goods: pizza and beer. The five bundles shown in the following table lie on the same indifference curve for the consumer.
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$$\begin{array} { | c | c | c | } \hline \text { Bundle } & \text { Pizza } & \text { Beer } \\\hline \text { A } & 6 & 9 \\\hline \text { B } & 6 & 7 \\\hline \text { C } & 6 & 5 \\\hline \text { D } & 9 & 5 \\\hline \text { E } & 10 & 5 \\\hline\end{array}$$
-Suppose that Akiko likes to consume one glass of chocolate milk with every three peanut butter cookies. For Akiko, an additional cookie has no value unless she can consume it with the appropriate proportion of chocolate milk. Akiko's indifference curves for chocolate milk and cookies are

• A)right angles.
• B)bowed inward, but not to a 90-degree angle.
• C)bowed outward.
• D)downward-sloping straight lines.

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Definitions:

Commercially Viable

Describes a product, service, or business that can generate enough revenue to cover its costs and yield a profit.

Federal Law

Legislation passed by the national government of the United States that applies throughout the country.

Creative Destruction

The hypothesis that the creation of new products and production methods destroys the market power of existing monopolies.

Dominant Firms

Companies that have a major share of sales in a specific market, significantly influencing that market's dynamics.