If Marlowe Obtains 9 Units of Utility Per Dollar Spent

question 140

Multiple Choice

If Marlowe obtains 9 units of utility per dollar spent on apples and 6 units of utility per dollar spent on oranges, then Marlowe

• A)is maximising total utility.
• B)should buy more apples and fewer oranges.
• C)should buy more oranges and fewer apples.
• D)should buy fewer oranges and fewer apples.

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Definitions:

Compensatory Stock Option Plan

A plan offered by a company to its employees as a form of compensation, which grants them the option to buy the company’s stock at a predetermined price.

Exercise Price

The price at which an option holder can buy (call option) or sell (put option) the underlying security or commodity.

Stock Warrants

Securities that give the holder the right to purchase a company's stock at a specified price before a certain date.