Manny Consumes Only Bananas and DVDs,and He Is on His

question 17

Multiple Choice

Manny consumes only bananas and DVDs,and he is on his highest possible indifference curve.Two bundles on this indifference curve are bundle A (5 bananas and 2 DVDs) ,and bundle B (3 bananas and 3 DVDs) .Between points A and B,what is Manny's marginal rate of substitution of bananas for DVDs?

• A)1
• B)2
• C)0.5
• D)1.33

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Definitions:

Private Corporations

Businesses that are owned privately, not by the government, and are run to make a profit for their owners or shareholders.

Scanlon Plan

A gain-sharing program that incentivizes employees to improve productivity through rewards that are based on saved labor costs.

Gain-sharing

An incentive scheme that rewards employees for their contributions to a company's productivity improvement by sharing the financial gains.

Goal-sharing Plans

Incentive schemes where organizational objectives are shared with employees, and rewards are offered based on achieving these goals.