Answer the Question on the Basis of the Following Two

question 185

Multiple Choice

Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. If the consumer's money income were cut from $52 to $28, and the prices of J and K remain at $8 and $4, respectively, she would maximize her satisfaction by purchasing

• A)3 units of J and 3 units of K.
• B)1 unit of J and 3 units of K.
• C)4 units of J and 1 unit of K.
• D)2 units of J and 3 units of K.

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Definitions:

Limited Liability

The legal principle where an individual's financial risk is restricted to a fixed amount, typically the value of their investment in a company, protecting personal assets from business debts and obligations.

Corporate Constitutional Rights

The legal rights and protections granted to corporations, treating them as entities that can exercise certain rights similar to individuals.

Corporate Citizenship

The commitment of a company to behave ethically and contribute to economic development while improving the quality of life of employees, communities, and society at large.

Corporation by Estoppel

A legal doctrine preventing one from denying the corporate status of an entity to escape liability after having treated it as a corporation.