Coke and Pepsi Are Perfect Substitutes for Mr

question 49

Multiple Choice

Coke and Pepsi are perfect substitutes for Mr. Drinker and the slope of his indifference curves is - 1. One day he bought 2 cans of Coke and 20 cans of Pepsi. (The cans of both drinks are the same size.)

• A) Coke is less expensive than Pepsi.
• B) Coke is more expensive than Pepsi.
• C) Coke and Pepsi cost the same.
• D) Mr. Drinker prefers Pepsi to Coke.
• E) None of the above.

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Definitions:

Double Rule

A method used in accounting to underline totals for certain accounts or figures, indicating a sum or conclusion.

Closing Process

The series of steps performed at the end of an accounting period to prepare the books for the next period, including updating accounts and transferring balances.

Income Summary

An account in the ledger that aggregates all income and expense accounts to determine the net profit or loss for a certain period.

Revenue Accounts

Accounts that track the income generated from a company's primary operations and activities.