Suppose You Are Eating Slices of Pizza and After Consuming

question 168

Multiple Choice

Suppose you are eating slices of pizza and after consuming the first slice you receive 14 utils of total utility, after the second you receive 22 utils of total utility, and after the third 25 utils of total utility. Then

• A)the law of diminishing marginal utility is not applicable because your total utility is increasing instead of diminishing.
• B)your total utility is 61 utils.
• C)your total utility is 25 utils, and the marginal utility of the first slice is 8 utils (22 - 14).
• D)your total utility is 25 utils, and the marginal utility of the third slice is 3 utils.

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Definitions:

Staircase Analysis

A method used to break down and examine the incremental progress or development in a series of stages or steps.

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Projections of the amount of a product or service that will be sold in a future period, based on historical data, market trends, and other factors.

Marketing Mix

The combination of different marketing elements used by a business to meet its targets within a given market, emphasizing the importance of adjusting these elements to achieve marketing objectives.

Effective Sales

The achievement of sales goals in an efficient manner with a focus on maximizing customer satisfaction and profitability.