The Table Shows the Marginal Utility Schedules for Old Product

question 139

Multiple Choice

The table shows the marginal utility schedules for old product X and new product Y for a hypothetical consumer. The price of X is $2, and the price of good Y is $1. The budget of the consumer is $10. When the consumer purchases the utility-maximizing combination of old product X and new product Y, total utility will be

• A)62.
• B)78.
• C)70.
• D)82.

---

Definitions:

Unit Product Cost

The complete expenditure involved in creating a single unit of a product, which includes the costs of direct materials, direct labor, and the apportioned overhead.

Unit Product Cost

The total cost associated with producing one unit of a product, including both direct costs and allocated indirect costs.

Machine-Hour

A measure of production output or usage time based on the hours a machine is operated.

Unit Product Cost

The cost assigned to a single unit of product, comprising both variable and fixed manufacturing costs.