Ambrose's Utility Function Is

question 12

Multiple Choice

Ambrose's utility function is . If the price of nuts (good 1) is $1, the price of berries (good 2) is $9, and his income is $369, how many units of berries will Ambrose choose?

• A) 10
• B) 4
• C) 325
• D) 5
• E) 8

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Definitions:

Depreciation

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives, representing how assets lose value over time.

Carrying Value

The book value of assets and liabilities recorded in the financial statements, often differing from the market value.

Net Realizable Value

The estimated selling price in the ordinary course of business minus the costs of completion, disposal, and transportation.

Accounts Receivable

The sum of money a company is entitled to receive from its customers for goods or services already delivered or used but not yet paid for.