Adhira Buys Chocolates and Almonds

question 161

Multiple Choice

Adhira buys chocolates and almonds.She has 3 bars of chocolates and 4 bags of almonds.The marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18.Is Adhira maximising her utility?

• A)Yes, the marginal utility from the last unit of each good is equal.
• B)No, she must buy 1 more chocolate bar to equate her quantities of the two goods.
• C)No, she must buy cut back to 3 bags of almonds to equate her quantities of the two goods.
• D)Without information on her income and the prices of the two goods, we cannot answer the question.

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Definitions:

Power Of The Test

A statistical measure indicating the likelihood of correctly rejecting a false null hypothesis.

Null Hypothesis

A statement predicting that no difference or effect will be observed in the study, serving as a default position until evidence suggests otherwise.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Null Hypothesis

A statement positing no relationship or effect between variables, which researchers aim to reject or fail to reject based on evidence.