Refer to the Information Provided in Table 6 -Refer to Table 6

question 153

Multiple Choice

Refer to the information provided in Table 6.2 below to answer the question(s) that follow.
Table 6.2
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Candy Bars per Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 40 & \\\hline 2 & 75 & \\\hline 3 & 100 & \\\hline 4 & 115 & \\\hline 5 & & 5 \\\hline \begin{array} { c } \text { Number of } \\\text { Hot Dogs per Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\\hline 2 & 54 & \\\hline 3 & 72 & \\\hline 4 & 84 & \\\hline 5 & & 6 \\\hline\end{array}$$
-Refer to Table 6.2. If the price of a candy bar is $1, the price of a hot dog is $2, and Aaron has $6 of income, Aaron's utility-maximizing combination of candy bars and hot dogs per day is

• A) 1 candy bar and 2 hot dogs.
• B) 4 candy bars and 1 hot dog.
• C) 2 candy bars and 1.5 hot dogs.
• D) indeterminate from this information.

---

Definitions:

Differentiated Products

Goods or services that are distinguished from others based on quality, features, or brand, making them non-identical and often allowing for market power.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Monopoly Firms

Companies that are the sole provider of a product or service in a market, leading to a lack of competition.

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.