Bags of Popcorn Bottles of Soda

question 80

Multiple Choice

Bags of Popcorn Bottles of soda

-In the table above, if Brent maximizes his utility by consuming 3 bags of popcorn and 3 bottles of soda, then the ratio of the price of popcorn to the price of soda is expected to be

• A) 1/2.
• B) 5/6.
• C) 6/5.
• D) 2.

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Definitions:

Scale of Operations

The size or level at which a company or plant is operating, indicating its capacity to produce goods or services.

Average Cost Curve

A graphical depiction showing the cost per unit of output at different levels of production, reflecting the variability in total cost over volume.

Positive Profit

A financial gain that occurs when the revenues received from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Scale of Operation

The size at which a company or factory operates, often impacting its production efficiency and costs.