Dmitri lives in houston and loves to eat desserts. he spends his entire weekly allowance on pudding and pie. a bowl of pudding is priced at $1.00, and a piece of pumpkin pie is priced at $3.00. at his current consumption point, dmitri's marginal rate of substitution (mrs) of pudding for pie is 2. this means that dmitri is willing to trade two bowls of pudding per week for one piece of pie per week.

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer: