A Utility Maximizing Person Gets Marginal Utility from Consuming Their

question 8

Multiple Choice

A utility maximizing person gets marginal utility from consuming their last orange and apple of 5 and 10 respectively.If apples cost 90 cents a piece,the oranges must cost

• A) $0.45 a piece.
• B) $0.90 a piece.
• C) $1.80 a piece.
• D) $2.70 a piece.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Tax Revenues

Income that the government receives from taxation, which can be levied on individuals, corporations, and other legal entities.

Federal Gasoline Taxes

Taxes imposed by the federal government on the sale of gasoline.

Payroll Taxes

Government levies on employee earnings to support social insurance programs, characteristically deducted from a worker's paycheck.