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:

Aristotle

An ancient Greek philosopher and scientist who made significant contributions in logic, metaphysics, ethics, and natural sciences.

Determined

Having a strong motivation or determination to achieve a specific outcome or goal.

Pierre-Simon de Laplace

A French mathematician and astronomer known for his work in celestial mechanics and the formulation of Laplace's equation.

Determinism

The philosophical theory that all events, including moral choices, are completely determined by previously existing causes.