-Adam Has 3 Apples and 3 Oranges

question 247

Multiple Choice

-Adam has 3 apples and 3 oranges. Eve has 2 apples and 2 oranges. The marginal utilities for Adam and Eve are summarized in the above table. Adam asks Eve to exchange one of her apples for an orange.

• A) Eve will be willing to make the exchange, because her total satisfaction will remain unchanged.
• B) Eve will be willing to make the exchange, because her total satisfaction will increase.
• C) Eve will be unwilling to make the exchange, because she loses 5 utils of satisfaction.
• D) Eve will be unwilling to make the exchange, because she loses 15 utils of satisfaction.

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Definitions:

Future Search Events

Participative planning meetings aimed at helping diverse groups of people discover shared values and common ground.

Employee Involvement

The extent to which workers are motivated to offer suggestions and engage in decision-making processes that impact their job and the company.

Organizational Diagnosis

A process of assessing an organization's health and effectiveness using systematic methods to identify strengths and areas for improvement.

Appreciative Inquiry

An approach to organizational change focusing on identifying what works well, analyzing why it works well, and then doing more of it.