The Below Table Shows the Average Utility (In Utils) Obtained

question 1

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2. Mr. Max has only $20 to spend. If the marginal utility of the fourth unit of A is 12 and the marginal utility of the sixth unit of B is 12, then:

• A)he should not buy anything.
• B)he should buy more of A and less of B.
• C)he should buy less of A and more of B.
• D)he should buy A and B in the quantities indicated.
• E)he should buy more of A and little more than that of B.

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Definitions:

Common Stock Investments

Investments that involve buying equity shares of public companies, giving investors ownership interests and potential dividends.

Real Assets

Physical or tangible assets such as land, buildings, precious metals, or commodities, which have intrinsic value due to their substance and properties.

Fixed-Income Securities

Financial instruments that pay returns on a fixed schedule, including bonds, notes, and other debt instruments that offer fixed interest payments.

Security Selection

The process of choosing individual securities for investment, based on the analysis of their potential for return relative to their risk.