-The Table Above Gives Cathy's Total Utility from Mt

question 213

Multiple Choice

-The table above gives Cathy's total utility from Mt. Dew. If the price of a Mt. Dew is $2, Cathy's marginal utility per dollar from the 3rd Mt. Dew is ________ units per dollar

• A) 20
• B) 10
• C) 32.5
• D) 40

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Definitions:

Perfectly Competitive

A market structure characterized by many small firms, a homogeneous product, no barriers to entry or exit, and where no single firm can influence the market price.

Profit-maximizing

The process of making business decisions that aim to increase the difference between total revenues and total costs to the highest possible level.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of an input in the production process.