Suppose That Jon Is Purchasing the Optimal Amounts of Apples

question 103

Multiple Choice

Suppose that Jon is purchasing the optimal amounts of apples and oranges.The marginal utility of the last apple is 8 and of the last orange is 6.If the price of an apple is $1,what must be the price of an orange?

• A)50 cents.
• B)75 cents.
• C)$1.33.
• D)$1.40.
• E)Cannot be determined from this information.

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Definitions:

Control Group

in experimental research, is a group of subjects that does not receive the treatment or intervention being tested, serving as a baseline to compare the effects of the treatment on the experimental group.

Representativeness

A heuristic in which an individual assesses the likelihood of an event by comparing it to an existing prototype in their mind.

Leakages

The outflow of economic resources or money from a system, such as savings, taxes, or imports, which can reduce domestic spending.

Reflectiveness

The ability or process of self-examination, exploring one's thoughts, feelings, and reasons behind one's actions.