Wilbur Consumes Two Goods,bacon and Eggs

question 282

Multiple Choice

Wilbur consumes two goods,bacon and eggs.He has maximized his utility given his income.Eggs costs $2 per dozen,and he consumes them to the point where the marginal utility he receives is 6.Bacon cost $4 per serving,and the relationship between the marginal utility that Wilbur gets from eating bacon and the number of servings he eats per month is as follows:

How many servings of bacon does Wilbur buy each month?

• A) 1
• B) 2
• C) 3
• D) 4

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Donations made to an institution, often with the stipulation that the principal remains intact while the income or interest is used for a specific purpose.

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Long-term assets acquired or invested in for the purpose of generating revenue over an extended period.

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A measure of the value of an asset or liability based on current market prices.

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The expense of replacing an asset at its current market price.