Suppose That for Jim the Marginal Benefit (MB)of Producing Is

question 1

Multiple Choice

Suppose that for Jim the marginal benefit (MB) of producing is $60 and that the marginal cost (MC) of producing is $10.Suppose also that his marginal benefit of stealing is $50 and the marginal cost of stealing is $10.Is Jim currently maximizing utility in terms of producing and stealing? If not,should he produce more and steal less,or produce less and steal more to move toward utility maximization?

• A) Yes,Jim is maximizing utility.
• B) No,Jim is not maximizing utility.Since the MB/MC ratio for producing is less than the MB/MC ratio for stealing,Jim should produce more and steal less.
• C) No,Jim is not maximizing utility.Since the MB/MC ratio for producing is greater than the MB/MC ratio for stealing,Jim should produce more and steal less.
• D) No,Jim is not maximizing utility.Since the MB/MC ratio for producing is greater than the MB/MC ratio for stealing,Jim should steal more and produce less.

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Definitions:

Documentary

A non-fictional film or television program intended to document some aspect of reality, primarily for the purposes of instruction, education, or maintaining a historical record.

Opinion

A belief or judgment that rests on grounds insufficient to produce complete certainty and does not necessarily have a basis in fact or knowledge.

Stronger

An adjective indicating greater strength, intensity, or effectiveness in comparison to something else.

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Healthcare professionals who have undergone specialized training and education to diagnose and treat mental, emotional, and behavioral disorders.