Elaine Values the Utility of Her First Cup of Coffee

question 25

Multiple Choice

Elaine values the utility of her first cup of coffee at $1; a second cup, $.75; and a third cup, $.50.If Elaine drinks three cups of coffee for breakfast, her total utility is equal to

• A)$.50, the value of her last cup of coffee.
• B)$1.00, the value of her first cup of coffee.
• C)marginal utility.
• D)$2.25.
• E)$1.50.

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