(Table: Optimal Choice of Milk and Honey) Hal's Total Utility

question 399

Essay

(Table: Optimal Choice of Milk and Honey) Hal's total utility from consuming milk and honey is given in the table.The price of milk is $2 per gallon, and the price of honey is $4 per jar.Hal's income is $16.Assuming that Hal spends all of his income on honey and milk, if he buys 2 jars of honey, he can buy _____ _ gallons of milk .
A.4
B.3
C.2
D.1

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Definitions:

Account Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Compounded Monthly

The calculation of interest where the interest earned over a month is added to the principal, and this process is repeated every month.

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, on a monthly basis.

Compounded Annually

Interest on an investment or loan calculated once a year on both the initial principal and the accumulated interest from previous periods.