Sheryl Is Maximizing Her Utility

question 225

Multiple Choice

Sheryl is maximizing her utility.She notices that her marginal utility from the last package of bubble gum consumed is greater than her marginal utility from the last package of mints consumed.This result means that the

• A) price of a package of gum is greater than the price of a package of mints.
• B) price of a package of mints is greater than the price of a package of gum.
• C) total utility of gum must be falling as more gum is consumed.
• D) total utility of mints must be falling as more mints are consumed.
• E) More information is needed to determine which, if any, of the above answers is correct.

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Definitions:

Esteem

The regard in which an individual or entity is held by others, often reflecting respect, admiration, or importance.

Cognitive Component

Part of an attitude that consists of a person's knowledge and perception of the attributes of an object or concept.

Altering

The process of making changes to something, often to tailor or modify it to fit a particular need or requirement.

Perception

The process by which individuals select, organize, and interpret sensory information to form a meaningful picture of the world.