Jill Smith, a Careful Utility Maximizer, Consumes Only Two Goods

question 442

Essay

Jill Smith, a careful utility maximizer, consumes only two goods, peanut butter and ice cream.She had just achieved the utility-maximizing solution in her consumption of the two goods when the price of peanut butter increases.As she adjusts to this event:
A.the marginal utility of peanut butter and of ice cream will rise.
B.the marginal utility of peanut butter and of ice cream will fall.
C.the marginal utility of peanut butter will fall, and the marginal utility of ice cream will rise.
D.the marginal utility of peanut butter will rise, and the marginal utility of ice cream will fall.

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Definitions:

Environmental Uncertainty

The degree to which future states of the environment are unpredictable, making it difficult for organizations to anticipate changes.

Environment and Strategy

The interplay between the external environmental factors and an organization's strategic planning and execution.

Strategy Formulation

The process of identifying and outlining the plans and actions necessary to achieve the organizational goals and objectives.

Mission

The core purpose or fundamental goal of an organization or group, typically reflecting its values and aspirations.