If Bella Eats One Piece of Pie,she Gains a Utility

question 10

Multiple Choice

If Bella eats one piece of pie,she gains a utility of 10.If she continues,a second piece yields a marginal utility of 8,a third will bring marginal utility of 2,and a fourth piece of pie will yield a marginal utility of -2.We can say:

• A)Bella's total utility from eating four pieces of pie would be 22.
• B)Bella's total utility will decrease if she eats the third piece of pie.
• C)Bella's total utility will be maximized if she eats three pieces.
• D)Bella's total utility decreases after the first piece of pie.

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Definitions:

Interest Rates

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on savings.

Bond's Price

The market price at which a bond is currently trading. This price can fluctuate based on interest rates, the bond's credit rating, and other factors.

Future Cash Flows

Estimated future financial earnings or expenditures, often used in investment analysis to determine value or profitability.

Coupon Rate

The annual interest rate paid by a bond relative to its face value, representing the yield an investor is expected to earn if the bond is held to maturity.