Suppose the Price Of $A$ Is $\$ 20$ , the Price Of $B$

question 15

Multiple Choice

Suppose the price of $A$ is $\$ 20$ , the price of $B$ is $\$ 10$ , and that the consumer is currently spending all available income. At the consumer's current consumption basket the marginal utility of $A$ is 8 and the marginal utility of $B$ is 2 .

• A) The consumer is currently maximizing utility.
• B) The consumer could increase utility by consuming more of good \(A\) and less of good \(B\).
• C) The consumer could increase utility by consuming more of good \(B\) and less of good \(A\).
• D) Nothing can be said about the consumer's utility because we do not know the consumer's income or utility function.

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Definitions:

Task

A specific assignment or piece of work to be done, usually as part of broader duties or projects.

Group Decisions

Decisions made collectively by a group of individuals rather than an isolated individual, often through a process of discussion and consensus.

Laissez-faire Leader

a leadership style characterized by minimal supervision, where subordinates are given the freedom to make decisions and solve problems on their own.

Management Traits

Characteristics or attributes shown by effective managers, including leadership, vision, communication, and decision-making skills.