Use the Information Below to Answer the Following Questions

question 105

Multiple Choice

Use the information below to answer the following questions.
Fact 9.3.1
Marc has an income of $20 and spends it on two goods,root beer (measured on the vertical axis) and chips (measured on the horizontal axis) .The price of root beer is $1 a can.The price of chips is $0.50 a bag.Initially,Marc chooses to consume 10 cans of root beer and 20 bags of chips.Then the price of root beer rises to $1.50 per can and the price of chips falls to $0.25 a bag.
-Refer to Fact 9.3.1.Marc's initial marginal rate of substitution was

• A)not calculable with the information given.
• B)equal to 2 cans of root beer given up for each bag of chips gained.
• C)equal to 1 can of root beer given up for each bag of chips gained.
• D)equal to 10 cans of root beer given up for each bag of chips gained.
• E)equal to 1/2 can of root beer given up for each bag of chips gained.

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Definitions:

Ethical Issue

A situation or problem that requires individuals or organizations to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Marketing Mix

A set of actionable marketing tools—product, price, place, and promotion—that a business uses to pursue its marketing objectives in the target market.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Supply Chain

The network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.