Elaine Values the Utility of Her First Cup of Coffee

question 25

Multiple Choice

Elaine values the utility of her first cup of coffee at $1; a second cup, $.75; and a third cup, $.50.If Elaine drinks three cups of coffee for breakfast, her total utility is equal to

• A)$.50, the value of her last cup of coffee.
• B)$1.00, the value of her first cup of coffee.
• C)marginal utility.
• D)$2.25.
• E)$1.50.

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Definitions:

Entrepreneur

An individual who creates, organizes, and operates a business venture, taking on greater than normal financial risks in order to do so.

Business

An organization or entrepreneurial entity engaged in commercial, industrial, or professional activities with the aim of generating profits by providing goods or services.

Sweat Equity

The non-monetary investment, typically in the form of labor or services, that a person contributes to a project or business.

Restaurant

A place where prepared food and drinks are sold to the public for consumption on the premises or takeout.