Refer to the Accompanying Table A)first Decreases Then Increases; Decreases
B)first Increases Then Decreases; Decreases

question 138

Multiple Choice

Refer to the accompanying table. Total utility ________ as additional apples are consumed, but marginal utility ________ with each additional apple consumed. $$\begin{array} { | c | c | } \hline \text { Number of Apples } & \begin{array} { c } \text { Tatal } \\\text { Utility }\end{array} \\\hline 1 &20 \\\hline 2 & 35 \\\hline 3 & 45 \\\hline 4 & 50 \\\hline 5 & 45 \\\hline\end{array}$$

• A)first decreases then increases; decreases
• B)first increases then decreases; decreases
• C)first decreases then increases; increases
• D)first increases then decreases; increases

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Definitions:

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to negative externalities or public goods not being produced in sufficient quantities.

State-Owned Bridge

A bridge that is owned, financed, and operated by the government or state authorities, indicating public ownership and responsibility.

Public Good

A good that is non-excludable and non-rivalrous, meaning its use by one person does not reduce its availability to others, and no one can be effectively excluded from using it.

Common Resource

A resource like air or water that provides users with tangible benefits but is difficult to exclude non-payers from using, often leading to overuse.