Suppose That for Merv the Marginal Utility of $50-Per-Serving Caviar

question 31

Multiple Choice

Suppose that for Merv the marginal utility of $50-per-serving caviar is 100 and the marginal utility of $1-per-serving popcorn is 10. For his snack, Merv should buy:

• A) the caviar if he has the $50; otherwise, the popcorn.
• B) the caviar if he has the $50; otherwise, nothing.
• C) the popcorn, whether he has the $50 or not.
• D) five servings of popcorn for each serving of caviar.

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Definitions:

Deceive

To mislead or trick someone into believing something that is not true.

Business

The activity of making, buying, or selling goods or providing services in exchange for money.

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Correct formation of words with the proper letters in their conventional order.

Look-alike/sound-alike Error

A mistake that occurs due to confusion between words that appear similar or sound similar but have different meanings.