Fernando Allocates His Lunch Money Between Pizza and Coke

question 51

Multiple Choice

Fernando allocates his lunch money between pizza and Coke.A slice of pizza costs $1.50,and a can of Coke costs $1.The marginal utility of the last slice of pizza Fernando ate that day was 30 units,and the marginal utility of the last can of Coke was 25 units.If Fernando decides to spend all of his lunch money,then identify the correct statement.

• A)Fernando allocates his money so as to maximize his total utility.
• B)Fernando's total utility would have been greater if he had purchased more Coke and less pizza.
• C)Fernando's total utility would have been greater if he had purchased more pizza and less Coke.
• D)Fernando could have increased his total utility by purchasing more Coke and the same quantity of pizza.
• E)Fernando could have increased his total utility by purchasing more pizza and the same quantity of Coke.

Understand various features to enhance the organization and presentation of slides.

Learn to apply and customize animations and transitions between slides.

Master techniques for styling and formatting text and objects within slides.

Gain knowledge on managing and integrating comments and reviews in presentations.

---

Definitions:

Unit Product Cost

The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs.

Operating Income

This represents the earnings before interest and taxes (EBIT) derived from a company's principal operating activities.

Year 2

Refers to the second year of a specific time frame, project, or financial period.

Variable Costing

A costing method that includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a product, excluding fixed manufacturing overhead.