-Suppose That You Consume Only Pizza,which Costs $4 Per Slice,and

question 174

Multiple Choice

-Suppose that you consume only pizza,which costs $4 per slice,and Diet Pepsi,which costs $2 each.The table above gives your utility from consuming these two goods.If your income is $20,which of the following consumption combinations will you choose?

• A) 5 slices of pizza and no Diet Pepsi
• B) 4 slices of pizza and 2 Diet Pepsis
• C) 3 slices of pizza and 4 Diet Pepsis
• D) 2 slice of pizza and 6 Diet Pepsis
• E) None of the above answers is correct.

---

Definitions:

Short-term Profit

Profits earned over a short period of time, typically a quarter or a year, reflecting the immediate financial health of a company.

Long-term Profits

Profits generated over an extended period, indicating the sustainability and viability of a company's business model.

SVA

Stands for Shareholder Value Added, which is a measure used to evaluate a company's ability to generate wealth for its shareholders beyond the required rate of return on their investment.

PV of Cash Flows

The present value of expected future cash flows discounted at the relevant rate, reflecting the current worth of those cash flows.