If Darlene's Marginal Benefit from Consuming Another Cookie Is Greater

question 16

Multiple Choice

If Darlene's marginal benefit from consuming another cookie is greater than the price of the cookie,then _____

• A)Darlene will not purchase any more cookies, as the opportunity cost of purchasing another cookie will be more than its price.
• B)Darlene will purchase more cookies as her total utility is zero.
• C)Darlene will purchase more cookies, as her marginal utility will decrease with the additional purchase.
• D)Darlene will purchase more cookies, as her marginal utility will increase with the additional purchase.
• E)Darlene will not purchase any more cookies ,as a reallocation of her budget will decrease her utility.

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Definitions:

Franchisor

The parent company that develops a product or business process and sells the rights to franchisees.

Business Process

A series of steps performed by a group of stakeholders to achieve a concrete goal, typically involving defining, measuring, analyzing, improving, and controlling processes.

Business-Format Franchising

A type of franchising in which the franchisee adopts the franchisor’s entire method of operation.

Fast-Food Restaurants

Eateries that specialize in providing quick service, convenience, and food that is prepared and served quickly to customers.