Table 67 Table 6

question 32

Multiple Choice

Table 6.7 Table 6.7 shows Antonio's utility from beer and pizza.
-Refer to Table 6.7.Suppose Antonio has $10 to spend and the price of beer = $2 per glass and the price of pizza = $2 per slice.How many of each good will he consume when he maximises his utility?

• A)2 glasses of beer, 1 slice of pizza
• B)2 glasses of beer, 3 slices of pizza
• C)3 glasses of beer, 2 slices of pizza
• D)4 glasses of beer, 5 slices of pizza

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profit or loss.

Standard Direct Materials

The predetermined cost and quantity of direct materials that are expected to be used in the production of a product.

Direct Materials Price

The cost per unit of raw materials used in the production of goods.

Standard Costs

predetermined costs assigned to goods and services, used as a benchmark for measuring performance.