(Table) Based on the Table, Assume That a Bag of Chips

question 175

Multiple Choice

(Table) Based on the table, assume that a bag of chips costs $3. The marginal utility per dollar for the first bag of chips is
$\begin{array}{l}\hline \quad \quad \quad {\text { Bottled Water }} \quad \quad \quad \quad \quad \quad \quad {\text { Bags of Chips }} \\\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 40 & 1 & 60 \\\hline 2 & 70 & 2 & 90 \\\hline 3 & 90 & 3 & 105 \\\hline 4 & 100 & 4 & 114 \\\hline 5 & 106 & 5 & 120 \\\hline\end{array}\end{array}$

• A) 10.
• B) 60.
• C) 15.
• D) 20.

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Definitions:

Internal Customers

Employees or departments within an organization who depend on the support or services provided by other parts of the company to fulfill their job duties.

Workflow

The sequence of industrial, administrative, or other processes through which a piece of work passes from initiation to completion.

Manufacture of a Product

The process of producing goods through the combination of labor, machinery, and processing or assembly operations.

Competitive Advantage

A condition that enables a company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with, resulting in benefits such as higher sales or margins and/or a larger market share.