The conditions for utility maximization are a. the law of diminishing marginal utility and the affordability rule. b. that the marginal utility per dollar on all goods is equal and the money spent on all goods adds up to the fixed budget. c. the equimarginal rule and the law of diminishing marginal utility. d. that the total utility per dollar on all goods is equal and the money spent on all goods adds up to the fixed budget.

You are bearish on telecom and decide to sell short 100 shares at the current market price of $50 per share. a. how much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. how high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (input the amount as a positive value. round your answer to 2 decimal places.)