If John's Marginal Benefit Derived from the Consumption of Another

question 114

Multiple Choice

If John's marginal benefit derived from the consumption of another candy bar is greater than the price of the candy bar,

• A) John will not purchase any more candy bars.
• B) John will increase his total satisfaction by purchasing the candy bar.
• C) the opportunity cost of the candy bar is lower than the price.
• D) John will decrease his total utility if he purchases the candy bar.

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Definitions:

ADH

Antidiuretic Hormone (ADH), also known as vasopressin, is a hormone that helps regulate water balance in the body by controlling the amount of water reabsorbed by the kidneys.

Diabetes Insipidus

Chronic excretion of large amounts of urine of low specific gravity accompanied by extreme thirst; results from inadequate output of antidiuretic hormone.

ADH

Antidiuretic hormone, a peptide hormone produced by the pituitary gland that regulates water absorption in the kidneys.

Insulin

Protein hormone secreted from the pancreas that increases the uptake of glucose and amino acids by most tissues.