If a Consumer Receives 20 Units of Utility from Consuming

question 175

Multiple Choice

If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars, the marginal utility of the second candy bar is

• A)25 utils.
• B)20 utils.
• C)5 utils.
• D)unknown as more information is needed to determine the answer.

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Definitions:

Optimism

A mental attitude characterized by hope and confidence in success and positive outcomes.

Escalation of Commitment

A behavioral pattern where an individual or group continues to invest in a decision despite facing negative outcomes, often due to cognitive biases or the desire to avoid loss or admit failure.

Path Dependency

The idea that decisions we face for any given circumstance are limited by the decisions we have made in the past, even though past circumstances may no longer be relevant.

Participative Decision Making

Decision making in which individuals who are affected by decisions influence the making of those decisions.