Jeannie's Marginal Utility from Her 4th Book in a Month

question 169

Multiple Choice

Jeannie's marginal utility from her 4th book in a month is 50. Her marginal utility from her 5th book

• A) is greater than 50.
• B) equals 50.
• C) is less than 50.
• D) might be more than, less than, or equal to 50 but more information is needed.

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Definitions:

Short Run

A time period in economics where at least one factor of production is fixed, limiting the immediate response of a firm to changes in market conditions.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.

Average Variable Cost

The total variable cost divided by the quantity of output produced.

Output

The amount of goods or services produced by a company, sector, or economy.