(Table) Referring to the Table, the Total Utility of Two

question 270

Multiple Choice

(Table) Referring to the table, the total utility of two bottles of root beer will be _____ units of utility.
$\begin{array}{|c|c|c|}\hline \begin{array}{c}\text { Bottles of } \\\text { Root Beer }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 20 & 20 \\\hline 2 & & 18 \\\hline 3 & 53 & \\\hline 4 & & 11 \\\hline 5 & 70 & 6 \\\hline\end{array}$

• A) 30
• B) 35
• C) 38
• D) 40

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Definitions:

Bonds

Debt instruments that larger companies sell to raise long-term funds.

Preferred Stock

A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.

Capital Lease

A lease agreement that grants a lessee the benefits and risks of ownership of the asset, typically recognized on the balance sheet.