Crackerjacks Cost Twice as Much as Doritos

question 34

Multiple Choice

Crackerjacks cost twice as much as Doritos. Fred maximizes utility by buying eight boxes of Crackerjacks and some number of bags of Doritos. If the last box of Crackerjacks gives Fred 100 units of utility, you can conclude that:

• A) Fred has also bought 16 bags of Doritos.
• B) the marginal utility of the last bag of Doritos Fred bought is 50 units.
• C) the total utility of the bags of Doritos Fred bought is 200 units.
• D) Fred has also bought four bags of Doritos.

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Definitions:

Monopolies

Market structures characterized by a single seller facing no competition in offering a unique product or service.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning no one can be prevented from using them and one person's use does not reduce their availability to others.

Collective Benefits

Advantages or positive outcomes that are shared and enjoyed by all members of a group or society, not just by the individual who incurred the cost.

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission.