Derek Has $1 to Spend at the Grocery Store

question 55

Multiple Choice

Derek has $1 to spend at the grocery store.An apple,an orange,and a banana cost $.50 each.If Derek's MU_A/P_A (ratio of marginal utility to price) of an apple is 45,MU_O/P_O of an orange is 38,and MU_B/P_B of a banana is 52,he will purchase a(n) _____ first and a(n) _____ second.

• A)apple; orange
• B)orange; apple
• C)banana; orange
• D)banana; apple
• E)orange; banana

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Definitions:

Meeting With Clients

A scheduled gathering between a service provider or business representative and one or more clients to discuss services, products, or other business matters.

Activity Cost Pools

Groups of indirect cost resources that are allocated to products and services using a cost driver.

Legal Firm

A business that provides legal services and is staffed by lawyers.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or projects based on their use of resources.