Suppose That Reza Buys Two Products and That the Marginal

question 9

Multiple Choice

Suppose that Reza buys two products and that the marginal utility of an additional carton of soy milk is 20 and its price is $1.25,whereas the marginal utility for an additional orange costing 50 cents is 7.
-Refer to the above information to answer this question.What can be deduced?

• A)The MU per dollar spent on soya milk is equal to that of an orange.
• B)The MU per dollar spent on soya milk is greater than that of an orange.
• C)The MU per dollar spent on soya milk is less than that of an orange.
• D)The MU per dollar spent on soya milk is 25.
• E)The MU per dollar spent on an orange is $3.50.

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Definitions:

Stable

A condition or situation that is not easily changed or likely to move or fail, maintaining equilibrium or consistency over time.

Émile Durkheim

A French sociologist, one of the founding figures of sociology, known for his studies on social cohesion and the functionalism perspective.

Social Groups

Collections of individuals who interact and share similar characteristics and a sense of unity.

Bureaucratic Rationalization

The process of creating an efficient organization through the rational design and organization of human activity, often associated with increased specialization and standardization of tasks.