The Following Table Describes Utility for Consuming Cans of Soda

question 65

Multiple Choice

The following table describes utility for consuming cans of soda. Fill in the blank spaces and answer the following question: At what point does the law of diminishing marginal utility set in? $$\begin{array} { | c | c | c | } \hline \text { Cans of Sada } & \text { Total utility } & \text { Marginal utility } \\\hline 1 & 14 & \\\hline 2 & & 12 \\\hline 3 & 36 & \\\hline 4 & 44 & 6 \\\hline 5 & & \\\hline\end{array}$$

• A) Between three and four cans
• B) Between four and five cans
• C) Marginal utility diminishes everywhere.
• D) Marginal utility never diminishes.

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Definitions:

Per-Worker Production Function

A graphical representation that shows the relationship between the amount of output produced per worker and the amount of capital available per worker.

Shape

The external form or appearance of an object, defined by its outline or surface configuration.

Diminishing Marginal Returns to Labor

A principle stating that if the amount of a variable resource (such as labor) increases while other factors are fixed, the additional output generated by the additional input will eventually decrease.

Productivity Growth Slowdown

A period characterized by a decrease in the rate at which the productivity of labor increases over time.