The Following Table Shows Ketta's Total Utility for Coffee and Croissants

question 101

Multiple Choice

The following table shows Ketta's total utility for coffee and croissants.

-Refer to Table 5.16 to answer this question.If Ketta has a budget of $15 and the price of both coffees and croissants are $3,what will be her optimal purchase?

• A)5 croissants.
• B)1 coffee and 4 croissants.
• C)2 coffees and 3 croissants.
• D)3 coffees and 2 croissants.
• E)4 coffees and 1 croissant.

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Definitions:

Direct Material

Raw materials that are directly traceable to the manufacturing of a product and are integral to its production.

Direct Labor

The labor costs directly tied to the production of goods or services.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly traced to that product.

Traditional Format Income Statements

A type of financial statement that presents the revenues, expenses, and profits or losses of a company over a specific period, formatted in a conventional manner.