Suppose That Janis Is Maximizing Her Total Utility from Chairs

question 140

Multiple Choice

Suppose that Janis is maximizing her total utility from chairs and tables.If the marginal utility of the last table she purchased is 200 utils,and the prices of chairs and tables are $50 and $100,respectively,then the marginal utility of the last chair she purchased

• A)is 100 utils
• B)is 400 utils
• C)is 200 utils
• D)is 50 utils
• E)cannot be determined without more information

---

Definitions:

Donee Beneficiary

A third party who benefits from a contract between two other parties, especially in cases involving the transfer of a gift or a donation.

Promisor

In a third-party beneficiary contract, the party to the contract who made the promise that benefits the third party.

Third-Party Beneficiary

An individual or entity that, though not a party to a contract, stands to benefit from its execution.

American Rule

A legal principle stating that each party in a lawsuit is responsible for its own attorney's fees, except if otherwise provided by statute or agreement.