If the Utility Function (U)between Bananas (B)and Jam (J)can Be

question 9

Multiple Choice

If the utility function (U) between bananas (B) and jam (J) can be represented as U(B,J) = 3ln(B) +4ln(J) ,what is the marginal rate of substitution (MRS) between bananas and jam?

• A) 4B.
• B) -3J/(4B).
• C) 4/(3J).
• D) 3B/J.

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Definitions:

Solvency

Refers to an entity's ability to meet its long-term financial liabilities.

Current Position Analysis

Evaluation of a company’s current financial health and performance, focusing on its liquidity, solvency, and profitability.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) or income and expense is represented as a proportion of the total account.

Percentage Analysis

A financial analysis technique that involves expressing each item in a financial statement as a percentage of a base amount to assess the financial health and performance of a company.