The Marginal Utilities Associated with the First 4 Units of Consumption

question 7

Multiple Choice

The marginal utilities associated with the first 4 units of consumption of good Y are 10, 12, 9, and 7, respectively. What is the total utility associated with the third unit?

• A) 3.
• B) 9.
• C) 25.
• D) 31.

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Definitions:

Critical Value

A threshold value used in statistics to decide whether to reject the null hypothesis.

Hypotheses

Plural of hypothesis; proposed explanations made on the basis of limited evidence as a starting point for further investigation.

Critical Value

A limit in hypothesis testing that sets the dividing line between the area where the null hypothesis is accepted and the area where it is rejected.

Hypotheses

Proposed explanations or predictions that are based on limited evidence as a starting point for further investigation.