Martha Loves to Eat Chili, Especially an Award-Winning Chili Recipe

question 73

Multiple Choice

Martha loves to eat chili, especially an award-winning chili recipe that calls for using 2 tablespoons of chili powder for every 1 pound of ground buffalo. Which of the following utility functions could represent Martha's preferences, where U is a function of tablespoons of chili powder (P) and pounds of ground buffalo (B) ?

• A) U = min{2B, P}
• B) U = min{0.50B, P}
• C) U = 2P + B
• D) U = 2PB

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically categorized as certain costs necessary to operate a business.

Assets Increase

A rise in the company's resources, resulting from transactions that bring future economic benefits to the entity.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not considered cash equivalents.