(Table: Marginal Utility Per Dollar of M&Ms) Andy's Total Utility

question 454

Essay

(Table: Marginal Utility per Dollar of M&Ms) Andy's total utility from eating snack-size bags of M&Ms is given in the table.The price of M&Ms is $2 per bag.Andy's marginal utility per dollar of the fourth bag of M&Ms is:
A.1
B.2
C.7.5
D.15

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Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered.

Project Undertaken

Refers to a specific initiative or task that has been started or committed to, usually within a business or professional context.

Sunk Costs

Costs that have been spent and are non-recoverable.

Erosion Costs

Costs that occur when a new project or investment negatively impacts the revenue or profits of existing projects or investments.