Use the Following to Answer Questions

question 9

Multiple Choice

Use the following to answer questions :
Figure: Harold's Indifference Curves
The figure shows three of Harold's indifference curves for bread and cheese.
-(Figure: Harold's Indifference Curves) Use Figure Harold's Indifference Curves.If the price of bread is $0.50 per loaf,the price of cheese is $1 per kilogram,and Harold has $7 to spend on bread and cheese,Harold's optimal consumption bundle is _____ loaves of bread and _____ kilograms of cheese.

• A) 6;4
• B) 4;3
• C) 3;2
• D) 2;8

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Definitions:

Joint and Several Liability

A legal doctrine under which each party in a lawsuit can be held responsible for the full amount of damages regardless of their individual share of fault.

Unlimited Personal Liability

A legal obligation where individuals can be held fully responsible for the debts and obligations of a business, potentially affecting their personal assets.

Partnership Authority

The legal power granted to a partner to act on behalf of and bind the partnership in business transactions.

Unlimited Personal Liability

A legal condition in which an individual can be held entirely responsible for the debts or obligations of a business entity, without limit to the value of that individual's assets.