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.

Understand the concept of user cost in the context of exhaustible resources and how it impacts pricing and conservation efforts.

Describe how discount rates influence consumer decisions in purchasing durable goods and educational investments.

Explain the Hotelling rule and its application to pricing and conservation strategies for monopolists versus competitive markets.

Assess the impact of interest rates on the consumption and conservation of depletable resources.

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Definitions:

Homogenous Species

A term inaccurately suggesting a species is genetically or phenotypically uniform; in reality, most species exhibit significant genetic and phenotypic diversity.

Gene Flow

The movement of alleles or genes from one population to another through various mechanisms, such as migration.

Regional Variations

Differences in language, culture, practices, or characteristics that vary from one region to another.

Suites Of Traits

A collection or combination of characteristics or qualities that are typically found together within a particular context or entity.