Suppose That the Price of a Pizza Is $10 and That

question 71

Multiple Choice

Suppose that the price of a pizza is $10 and that the price of a blouse is $30.At her present level of consumption,Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/2.To maximize total utility,she should

• A)buy more pizzas and fewer blouses
• B)buy fewer pizzas and more blouses
• C)continue to buy the same quantities of pizza and blouses
• D)spend more time consuming pizza
• E)spend more time buying blouses

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Definitions:

Cash Flow Problems

Situations where a business struggles to manage the timing and amounts of cash inflows and outflows, affecting its ability to meet financial obligations.

Federal Regulations

Laws established by federal agencies that dictate the conduct of individuals, businesses, and other entities.

Net Income

The total revenue minus total expenses, representing the profit or loss over a specific period.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate until it matures.