Milkshakes Sodas -The Table Above Shows Tom's Total Utility from Milkshakes and Utility

question 361

Multiple Choice

Milkshakes Sodas

-The table above shows Tom's total utility from milkshakes and sodas. A soda costs $1.00. What is the marginal utility per dollar spent when the eighth soda is purchased?

• A) 32 units per dollar
• B) 20 units per dollar
• C) 10 units per dollar
• D) 8 units per dollar

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Definitions:

Demand Schedule

An illustration that details the quantity of a commodity or service that individuals are eager and have the means to purchase at varying prices.

Profit-Maximizing

The process or strategy employed by firms to increase their profits to the highest possible level.

Cost Data

Information regarding the expenses involved in producing a good or service, including materials, labor, and overhead costs.

Degrees of Competition

The extent to which different businesses within a market or industry compete with one another.