Table 10-7 Table 10-7 Shows Antonio's Utility from Beer and Pizza

question 179

Multiple Choice

Table 10-7

Table 10-7 shows Antonio's utility from beer and pizza.
-Refer to Table 10-7.Suppose Antonio has $10 to spend and the price of beer = $2 per glass and the price of pizza = $2 per slice.How many of each good will he consume when he maximizes his utility?

• A)2 glasses of beer, 1 slice of pizza
• B)2 glasses of beer, 3 slices of pizza
• C)3 glasses of beer, 2 slices of pizza
• D)4 glasses of beer, 5 slices of pizza

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically resulting in lower per-unit costs with increased production.

Horizontal Mergers

The combination of two or more firms operating at the same level of the supply chain in similar or different industries.

Production

The process of creating, manufacturing, or enhancing goods and services.

Distribution

In business, distribution refers to the process of getting a product or service from the manufacturer or service provider to the end consumer.