Sam Has $200 a Month to Spend on Either Tanning

question 48

Multiple Choice

Sam has $200 a month to spend on either tanning sessions or rounds of golf.Tanning sessions are $20 each,and a round of golf is $40.What can we say about Sam's utility?

• A) Sam will get more utility from each round of golf than each tanning session.
• B) Sam will get the same utility from one round of golf as he would from two tanning sessions.
• C) Sam will maximize his utility from 2 rounds of golf and 6 tanning sessions.
• D) We cannot say anything about Sam's utility from the consumption of these goods without more information.

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Definitions:

Vendor/Supplier Managed

A situation in which the supplier takes responsibility for maintaining inventory levels and ordering supplies, typically based on previously agreed-upon guidelines with the purchaser.

Purchasing Cards

Specialized payment cards issued to employees to make procurement transactions more efficiently and to reduce processing costs.

Small Value Orders

Purchases or orders of relatively low monetary value, which might not warrant the same level of procurement scrutiny as larger expenditures.

E-Procurement System

An electronic system that automates the purchasing and procurement processes of organizations.