A Ready-To-Eat Cereal Manufacturer Faces Two Types of Consumers,adults and Children,having

question 11

Multiple Choice

A ready-to-eat cereal manufacturer faces two types of consumers,adults and children,having the following schedule of gross surpluses for each additional unit of cereal consumed. $\begin{array}{l}\begin{array}{lll}&\text { Marginal } & \text { Marginal } \\&\text { surplus } & \text { surplus } \\&\text { this ounce } & \text { this ounce } \\&\text { provides } & \text { provides } \\\text { Ounce of }&\text { adults in } & \text { children } \\\text { cereal }&\text { cents } & \text { in cents }\\\hline\text { First } & 20 & 40 \\\text { Second } & 16 & 32 \\\text { Third } & 12 & 24 \\\text { Fourth } & 8 & 16 \\\text { Fifth } & 4 & 8 \\\text { Sixth } & 0 & 0 \\\text { Seventh } & 0 & 0\end{array}\end{array}$ Cereal costs 10 cents per ounce to produce. Begin by assuming that the manufacturer has full information about types because adults only by fiber-rich cereal and children only buy sweet cereal (with marshmallows) .

• A)3 ounces of fiber cereal sold to adults for 48 cents; 4 ounces of sweet cereal sold to children for $1.12.
• B)3 ounces of fiber cereal sold to adults for 36 cents; 4 ounces of sweet cereal sold to children for 64 cents.
• C)5 ounces of fiber cereal sold to adults for 60 cents; 5 ounces of sweet cereal sold to children for $1.20.
• D)5 ounces of fiber cereal sold to adults for 20 cents; 5 ounces of sweet cereal sold to children for 40 cents.

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Definitions:

Ethical Issues

Moral challenges that arise in the context of professional practices, often involving the right course of action in complex situations.

Biological Makeup

The genetic and physiological characteristics that define an individual's biology, including genetic code, organ functioning, and hormonal levels.

Internal Mental Events

Psychological phenomena that occur within the mind, including thoughts, feelings, and perceptions, not directly observable by others.

B.F. Skinner

A psychologist from America recognized for his contributions to the field of behaviorism and for creating the operant conditioning theory.