Joseph Chooses a Combination of Apples and Oranges Along His

question 362

Multiple Choice

Joseph chooses a combination of apples and oranges along his budget line. The marginal rate of substitution of apples for oranges is 2, the price of an apple is $0.50, and the price of an orange is $0.10. Joseph:

• A) is maximizing total utility.
• B) should consume more apples and fewer oranges to maximize total utility.
• C) should consume fewer apples and more oranges to maximize total utility.
• D) may or may not be maximizing total utility.

---

Definitions:

Future Cash Flows

Estimated amounts of money expected to be received or paid out in the future due to current or planned operations or investments.

Minerals

Naturally occurring solid substances with a defined chemical composition and crystal structure, used extensively in various industries.

Intangible Assets

Non-physical assets that have value due to the rights or information they hold, such as patents, trademarks, and goodwill.

Patent

A government-granted exclusive right to an inventor, allowing them to protect their invention from being made, used, or sold by others for a certain period.