Jane Is Maximizing Total Utility While Consuming Food and Clothing

question 280

Multiple Choice

Jane is maximizing total utility while consuming food and clothing.Her marginal utility from food is 50,and her marginal utility from clothing is 25.If clothing is priced at $10 per unit,the price of food per unit must be

• A) $2.
• B) $2.50.
• C) $5.
• D) $20.

---

Definitions:

μ

The symbol commonly used to represent the mean or average in statistics and mathematics.

M/D/1

A notation in queueing theory that represents a system with a single server, where arrivals follow a Markovian (Poisson) process, service times are deterministically fixed, and there is only one server.

Constant Service Time

A situation in operational management where the service time remains the same for all customers or objects being serviced.

Units Arrive

Refers to the point in time when individual items or batches of product reach a designated location in a supply chain or manufacturing process.