Suppose That There Are Five Bottles of Lemonade,each of Which

question 139

Multiple Choice

Suppose that there are five bottles of lemonade,each of which gives the consumer the same level of utility.According to the law of diminishing marginal utility,how can one receive the highest utility?

• A)Consume all five bottles in the next hour
• B)Consume all five bottles today
• C)Consume all five bottles in one day next week
• D)Consume two bottles today and three tomorrow
• E)Consume one bottle each day for the next five days

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that is kept or retained and not paid out as dividends to shareholders but reinvested in its core business or to pay debt.

Shareholders'

Individuals or entities that own one or more shares of stock in a public or private corporation, granting them certain rights such as voting on corporate matters.

Reinvested Profit

Earnings that a company plows back into itself to fund growth, debt repayment, or asset purchases rather than distributing to shareholders as dividends.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, providing insight into its profitability.