Assume That the Marginal Utilities for the First Three Units

question 142

Multiple Choice

Assume that the marginal utilities for the first three units of a good consumed are 200, 150, and 125, respectively.The total utility for the first unit is:

• A) 125.
• B) 150.
• C) 200.
• D) 350.

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Definitions:

Scarce Resources

Fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of allocation decisions.

Individual

A single human being apart from a society or community, often considered as an independent entity in economic theories.

Unskilled Labor

Labor that requires no specialized skills, education, or training, and typically involves simple tasks that can be easily learned on the job.

Market Wage

The prevailing rate of pay for labor in a particular industry or occupation, determined by the supply and demand for labor in that market.