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:

Communicating With Coalition

The act of sharing information, negotiating strategies, and aligning objectives among members of a coalition or alliance.

Perceptions Of Fairness

Individual beliefs or attitudes regarding the equity or justice of actions, decisions, or distributions.

Rationality

The quality of being based on or in accordance with reason or logic.

Fixed Ratio

Fixed ratio refers to a schedule of reinforcement where a response is reinforced only after a specified number of responses, commonly used in behavior modification.