You Consider Yourself to Be Wise Consumer

question 362

Multiple Choice

You consider yourself to be wise consumer. The marginal utility/price ratio of coffee is 12 utils per dollar. If the price of a donut is $0.75, you should only buy the donut if it gives you at least

• A) 16 utils of satisfaction.
• B) 9 utils of satisfaction.
• C) 12 utils of satisfaction.
• D) The answer cannot be determined with this information.

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Definitions:

Total Cost

The aggregate expenditure involved in creating a product or service, including all variable and fixed costs.

Construction Cost

The total expenses incurred during the building of a structure, including materials, labor, and other related costs.

Operating Cost

Expenses associated with the day-to-day running of a business, excluding the cost of goods sold.

Soft Infrastructure

Non-physical infrastructure, including institutions, human capital, and societal systems that support economic activities.