Elaine Values the Utility of Her First Cup of Coffee

question 166

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 marginal 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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Definitions:

Secure Neighborhood

A residential area with enhanced security measures and protocols to protect its inhabitants.

Less Secure Neighborhood

An area characterized by higher risk of crimes or adverse events, affecting residents' sense of safety.

Insurance Premium

The amount of money an individual or business must pay for an insurance policy, often determined by the risk profile of the insured.

Imperfect Estimates

Approximations or assessments that may not accurately reflect the true value or outcomes due to uncertainties or limited information.