Assume That the Utility Function of Wine for a Certain

question 37

Multiple Choice

Assume that the utility function of wine for a certain consumer is given by TU = 96Q - 3Q².If wine is free,to maximize utility,the amount the consumer should consume is:

• A) 6 bottles of wine.
• B) 16 bottles of wine.
• C) 90 bottles of wine.
• D) 93 bottles of wine.
• E) unknown; there is insufficient information to determine this.

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Definitions:

Retained Earnings

The accumulated portion of net income that a company decides to keep, rather than distributing among shareholders as dividends, to finance investment or pay off debt.

Common Shares

Equity securities representing ownership interests in a corporation, providing voting rights and entitling shareholders to a share of the company's profits via dividends.

Share Capital

The total amount of funds raised by a company through the issuance of shares to shareholders, representing ownership in the company.

Retained Earnings

The portion of a company's profit that is kept or retained within the company, not distributed to shareholders as dividends.