The Following Table Lists the Utility That Steve Receives from Consuming

question 35

Multiple Choice

The following table lists the utility that Steve receives from consuming oranges at $0.50 apiece. What is the marginal utility of increasing consumption from two to three oranges? $\begin{array}{|c|c|}\hline \text { Number of oranges } & \text { Total utility } \\\hline 0 & 0 \\\hline 1 & 4 \\\hline 2 & 9 \\\hline 3 & 15 \\\hline 4 & 20 \\\hline 5 & 24 \\\hline\end{array}$

• A)3
• B)6
• C)5
• D)12

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.

Exchange Gain

A profit resulting from foreign currency transactions, due to favorable changes in exchange rates.

Exchange Rate

The rate at which one currency can be exchanged for another, often determined by financial markets or government policy.

Cash Payment

The act of paying for goods or services with cash rather than through credit or any form of deferred payment.