Basil Is Maximizing His Utility from Consuming Tea and Crumpets

question 142

Multiple Choice

Basil is maximizing his utility from consuming tea and crumpets.If the marginal utility of the last crumpet was 32 units of utility and the prices of tea and crumpets are $4 and $8, respectively, what was the marginal utility of the last cup of tea Basil consumed?

• A)2 units of utility
• B)12 units of utility
• C)$6
• D)128 units of utility
• E)16 units of utility

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Definitions:

Traditional Authority

The inherited right of individuals to expect loyalty and obedience from others; authority based in custom and tradition.

Rational-Legal

A concept in sociology that describes a form of governance or organization founded on laws, rules, and procedures rather than on traditional or charismatic authority.

Favoritism

The practice of giving unfair preferential treatment to one person or group at the expense of others.

Nepotism

Favoritism shown to relatives or friends by those in power, often by providing them employment.