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The following table shows a hypothetical total utility schedule for a consumer of chocolate candy bars

. Number consumed /Total Utility

0/ 0

1/ 9

2 /19

3/ 27

4/ 35

5/ 42

6 /42

7 /40

This consumer beings to experience diminishing marginal utility when he consumes the a. First candy bar b. Second candy bar c. Third candy bar d. Fourth candy bar

Marginal utility becomes negative with the consumption of the a. Fourth candy bar b. Fifth candy bar c. Sixth candy bar d. Seventh candy bar

Based on the data, you can conclude that the a. Marginal utility of the fourth unit is 6 b. Marginal utility of the second unit is 27 c. Total utility of 5 units is 42 d. Total utility of 3 units is 55

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Samantha Balando
Samantha BalandoLv7
28 Sep 2019

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Related questions

25) Billy likes candy bars and popcorn. Candy bars sell for $0.50 each and popcorn sells for $1 per bag. Currently he is in consumer equilibrium. Then the price of a candy bar rises to $1. Which statement is true in the new consumer equilibrium? A) The marginal utility from candy will decrease. B) The marginal utility from popcorn will increase. C) Marginal utility per dollar on candy bars will be equal to 2. D) Total utility will increase. E) The marginal utility from candy will be equal to the marginal utility from popcorn.

11. A dehydrated person has two glasses of water. Compared with the person's first glass of water, total utility after the second glass will:

a)

 increase and marginal utility will decrease.

b)

 decrease and marginal utility will decrease.

c)

 increase and marginal utility will increase.

d)

decrease and marginal utility will increase.

14. Jenn's marginal utility of the last candy bar consumed is 8 and her marginal utility of the last smoothie consumed is 20. If candy bars cost $2 and smoothies cost $4, which statement is true according to the utility maximization rule?

a)

 Jenn is maximizing her utility.

b)

 Jenn must consume more candy bars and less smoothies to maximize utility.

c)

 Jenn must consume more smoothies and less candy bars to maximize utility.

d)

Jenn must consume less of both candy bars and smoothies to maximize utility.

17. Which of these is not an example of a sunk cost that is subject to poor economic decision making?

a)

 a new laptop that you purchased for school

b)

 an appraisal fee to determine the value of a house you are thinking of buying

c)

 tuition that you paid for an economics course

d)

 a registration fee for a local 10K race

1. Dianna has a choice between lobster and steak for dinner. The lobster dinner costs $30, and gives her utility of 60, while the steak dinner costs $20 and gives her utility of 50. Which should Dianna choose?

Select one:

a. Dianna would be indifferent between the two choices.

b. The steak

c. The lobster

d. Dianna should have both dinners.

e. The answer cannot be determined without knowing Dianna's utility function.

2. Robert spends all his income on dancing shoes and CDs. The price of the shoes is three times the price of CDs. What should Roger do to maximize his utility?

Select one:

a. Robert should buy shoes and CDs until the total utility from shoes is three times the marginal utility from CDs.

b. Robert should buy shoes and CDs until the marginal utility from shoes is three times the marginal utility from CDs.

c. Robert should buy three times as many CDs as shoes.

d. Robert should buy equal amounts of shoes and CDs.

e. Robert should buy three times as many shoes as CDs.

3. You are currently trying to maximize your utility by buying 10 candy bars and 20 glasses of milk. The marginal utility of the 10th candy bar is 150, and the marginal utility of the 20th glass of milk is 200. You are spending all your income. The price of milk is $1 per glass, and the price of candy bars is $1.50 per bar. Are you maximizing your utility?

Select one:

a. No, the marginal utility of milk is greater than the marginal utility of candy, so you should consume more milk and less candy.

b. No, the marginal utility per dollar spent on the last unit of milk is greater than the marginal utility per dollar spent on the last unit of candy, so you should consume more milk and less candy.

c. No, the price of milk is less than the price of candy, so you should consume more milk and less candy.

d. Yes, and thus you should not change your choice.

e. No, the marginal utility per dollar spent on the last unit of candy is greater than the marginal utility per dollar spent on the last unit of milk, so you should consume more candy and less milk.

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