The Following Table Shows the Marginal Benefit That Marcus Derives

question 85

Multiple Choice

The following table shows the marginal benefit that Marcus derives by consuming different quantities of hotdog and soda. The price of a hotdog is $3, and the price of a soda is $1.

-Refer to the table above.The price of a soda increases from $1 to $2.What is the optimal combination of Soda and Hotdog for Marcus,if his weekly budget for hotdog and soda is $10?

• A) 2 sodas, and 2 hotdogs
• B) 3 sodas, and 3 hotdogs
• C) 6 sodas, and 5 hotdogs
• D) 4 sodas, and 2 hotdogs

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Definitions:

Right of Contribution

The right that allows a party who has paid more than their share of a joint obligation to recover the excess paid from other parties responsible for the obligation.

Cosureties

Parties who jointly agree to share the responsibility for someone else's obligation, typically in a surety bond or loan guarantee.

Surety

A person or entity that takes responsibility for another's performance of an undertaking, such as fulfilling a contract or making a payment.

Conditional Guarantors

Parties that agree to fulfill the obligations of a defaulting party under certain conditions specified in the agreement.