Gilberto lives in Philadelphia and loves to eat desserts. He spends his entire weekly allowance on jello and pie. A bowl of jello is priced at $1.75, and a piece of apple pie is priced at $7.00. At his current consumption point, Gilberto's marginal rate of substitution (MRS) of jello for pie is 4. This means that Gilberto is willing to trade four bowls of jello per week for one piece of pie per week. Does Gilberto's current bundle maximize his utility—in other words, make him as well off as possible? If not, how should he change it to maximize his utility?

The market for corn in country a is highly competitive. at the current market price of $5/bushel there is a shortage of 100,000 bushels of corn in this country. media reports claim that the price of corn will rise drastically in the near future. according to these reports, the neighboring country b had witnessed a similar situation recently. at the same price, the shortage in country b was also 100,000 bushels and eventually the equilibrium price in b went up to $10/bushel. both countries are known to have equal number of corn producers and the market supply of corn is identical at all prices. this, combined with the fact that consumers in the two countries also have similar tastes and preferences, led the media to conclude that the price of corn in country a would soon be as high as $10/bushel. the new equilibrium price turns out to be below $10/bushel, what inferences can be drawn?

The blank is type of decision-maker who over analyzes information

Decision alternatives should be identified before decision criteria are established. are limited to quantitative solutions are evaluated as a part of the problem definition stage. are best generated by brain-storming.