Table 10-3 -Refer to Table 10-3.For Steak and Cheese and Grilled Chicken

question 28

Multiple Choice

Table 10-3

-Refer to Table 10-3.For steak and cheese and grilled chicken sandwiches,the table contains the values of the marginal utility (MU) and marginal utility per dollar (MU/P) for Mabel Jarvis.Mabel has $14 to spend on steak and cheese and grilled chicken sandwiches.Which of the following statements is true?

• A)If Mabel maximizes her utility she will buy three steak and cheese sandwiches and two grilled chicken sandwiches.
• B)If Mabel was maximizing her utility when spending $14 and then received an additional $4,she would receive the most marginal utility per dollar if her next purchase was another grilled chicken sandwich.
• C)Mabel will first buy two steak and cheese sandwiches; then with her remaining $6 she will buy three grilled chicken sandwiches.
• D)To maximize her utility,Mabel will need a total of $36,the income needed to buy 6 steak and cheese sandwiches and 6 grilled chicken sandwiches.

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Definitions:

Conversion Clause

A provision in a contract or policy allowing for the change of one form of benefit or contract to another, such as converting from a term to a whole life insurance policy.

Fiduciary Duty

The obligation to act in the best interest of another party, such as a trustee's duty towards the beneficiaries of the trust.

ULPA of 2001

The Uniform Limited Partnership Act of 2001 is legislation that provides updated guidelines and regulations for the formation, operation, and dissolution of limited partnerships in the United States.

Transfer of interest

The process of assigning or transferring one’s legal rights or stake in a property or entity to another.