The Following Table Shows John's Total Utility Derived from Billiards

question 72

Multiple Choice

The following table shows John's total utility derived from billiards and bowling games. Assume John has $30 to spend on a game of billiards and/or a game of bowling. A game of billiards costs him $4, and a game of bowling costs him $2. Which of the following is John's utility-maximizing combination of the games of billiards and the games of bowling? ​
Table 6.5
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• A)Four games of billiards and four games of bowling
• B)Five games of billiards and two games of bowling
• C)Three games of billiards and eight games of bowling
• D)Five games of billiards and five games of bowling
• E)Twelve games of bowling

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Definitions:

Coupon Rates

Coupon Rates are the annual interest rates paid by bond issuers on the bond's face value, distributed typically in semi-annual payments.

Floating-Rate Bonds

Bonds with interest rates that adjust periodically based on a reference interest rate or index, protecting investors from interest rate risk.

Market Price

The price at which a product or service is traded in the competitive marketplace.

Put Provision

A clause found in certain securities that allows the holder to force the issuer to repurchase the security at specified prices before maturity.