The Following Table Shows Erica's Utility for Muffins and Grapefruit

question 20

Multiple Choice

The following table shows Erica's utility for muffins and grapefruit.

-Refer to the above information to answer this question.If Erica has a budget of $5 and the price of a muffin is $2 and a grapefruit is $1,what will be her optimal purchase?

• A)0 muffin and 5 grapefruit.
• B)1 muffin and 3 grapefruit.
• C)2 muffins and 1 grapefruit.
• D)3 muffins and 0 grapefruit.
• E)3 muffins and 1 grapefruit.

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Definitions:

Cost Object

An item for which costs are measured and assigned, which can include products, services, projects, or customers.

Volume of Activity

A term referring to the total amount of work or operations completed in a specific period, often used in analyzing business efficiency or productivity.

Just-In-Time Manufacturing

Just-in-time manufacturing is an inventory management strategy where materials are produced or acquired only as needed, reducing waste and improving efficiency.

Inventories

Materials and goods held by a business for the purpose of resale, production, or as raw materials.