Katie Finds That the Marginal Utility from a Compact Disc

question 118

Multiple Choice

Katie finds that the marginal utility from a compact disc is 30 and the marginal utility from a pizza is 10. The price of a compact disc is $15 and the price of a pizza is $10. In order to increase her utility, Katie should

• A) consume more compact discs and fewer pizzas.
• B) consume fewer compact discs and more pizzas.
• C) not change her consumption of pizza and compact discs.
• D) consume fewer compact discs and fewer pizzas.

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Definitions:

Jurisdiction

The official power or authority to make legal decisions and judgments, often within a specific geographic area or over particular types of cases.

Nonresident Defendant

A defendant in a legal case who does not reside in the jurisdiction where the case is filed.

Spurious Correlation

A relationship between two variables that appears to have a correlation but is actually caused by a third variable, leading to misleading statistical conclusions.

Causal Explanation

The reasoning or justification that establishes a cause-and-effect relationship between events or actions.