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

---

Definitions:

Direct Materials Cost

Direct Materials Cost is the expenditure for raw materials that are directly traceable to the production of a specific product or service.

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.

Factory Overhead

Indirect costs related to manufacturing, such as utilities, maintenance, and salaries of supervisory personnel not directly involved in production.

Cost

The amount of money that needs to be spent to purchase, produce, or maintain something.