Don Receives 100 Utils from Consuming Two Oranges

question 178

Multiple Choice

Don receives 100 utils from consuming two oranges. The utility he derives from consuming the second orange equals 30 utils. Which of the following conclusions is derived from the law of diminishing marginal utility?

• A)The marginal utility Don receives from consuming the third orange will be less than 30 utils.
• B)The marginal utility Don receives from consuming the third orange will be less than 100, but greater than 30 utils.
• C)If the price of oranges decreases, Don will buy fewer oranges, ceteris paribus.
• D)The total utility Don receives from consuming the first orange is less than the marginal utility from consuming the first orange.

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Definitions:

Generalization

The process of applying the principles learned from specific instances to broader and different situations.

Discrimination

In psychology, the ability to distinguish between different stimuli and respond appropriately according to their differences.

Modeling Effect

Learning a new behavior from a model through the acquisition of new responses.

Disinhibitory Effect

Describes the phenomenon where observing a model being rewarded for a prohibited or inhibited behavior increases the likelihood of the observer engaging in that behavior.