If the Marginal Utility of the Third Cup of Coffee

question 122

Multiple Choice

If the marginal utility of the third cup of coffee is 23 and the marginal utility of the fourth cup is 15,then

• A) it is optimal for the consumer to have three cups of coffee.
• B) the price of a cup of coffee must be relatively low.
• C) it is optimal for the consumer to have four cups of coffee.
• D) the law of diminishing marginal utility is evident.
• E) the price of a cup of coffee must be relatively high.

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Definitions:

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A guarantee provided by a manufacturer or seller regarding the condition of a product and a promise of repair or replacement within a specified period of time.

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A small electronic device worn in or behind the ear that amplifies sound for people with hearing loss.