Todd Is a Cattle Rancher

question 9

Multiple Choice

Todd is a cattle rancher. In June and July he spent his clothing budget on jeans and cowboy hats. Each pair of jeans cost $50 and each hat cost $100. At Todd's optimal choice, his marginal utility from the last pair of jeans purchased is 200. This means that his marginal utility from the last cowboy hat purchased is:

• A) 550
• B) 500
• C) 450
• D) 400

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Definitions:

Balance Sheet

A report detailing a company's assets, liabilities, and equity of shareholders at a given moment.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, often held to reissue or retire the shares.

Investing Activity

Any use of a company's cash or resources to invest in capital assets, such as stocks, bonds, or physical properties, with an expectation to earn a return.

Operating Activities

Activities that constitute the primary or central operations of a business, generating revenue and incurring expenses as part of its regular business functions.