Table 10-4 -Refer to Table 10-4.For Steak and Cheese Sandwiches and Grilled

question 71

Multiple Choice

Table 10-4

-Refer to Table 10-4.For steak and cheese sandwiches and grilled chicken sandwiches, the table contains the values of the marginal utility (MU) and marginal utility per dollar (MU/P) for Mabel Jarvis.Mabel has $14 to spend on steak and cheese sandwiches and grilled chicken sandwiches.Which of the following statements is true?

• A)If Mabel maximizes her utility, she will buy three steak and cheese sandwiches and two grilled chicken sandwiches.
• B)If Mabel was maximizing her utility when spending $14 and then received an additional $4, she would receive the most marginal utility per dollar if her next purchase was another grilled chicken sandwich.
• C)Mabel will first buy two steak and cheese sandwiches; then with her remaining $6 she will buy three grilled chicken sandwiches.
• D)To maximize her utility, Mabel will need a total of $36, the income needed to buy 6 steak and cheese sandwiches and 6 grilled chicken sandwiches.

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Definitions:

Psychological Closeness

The feeling of proximity and intimacy towards another individual or group, which may not necessarily correspond to physical distance.

Misleading Statement

A declaration or assertion that is intended to deceive or lead a person away from the truth or accurate understanding.

Situational Leadership Model

A leadership theory proposing that the most effective leaders adapt their style according to the maturity and capability of their followers and the specifics of the situation.

Leadership Styles

Different approaches to providing direction, implementing plans, and motivating people, such as authoritarian, democratic, and laissez-faire styles.