If the Utility Function (U)between Bananas (B)and Jam (J)can Be

question 100

Multiple Choice

If the utility function (U) between bananas (B) and jam (J) can be represented as U = 3ln(B) +4ln(J) the marginal utility of jam equals

• A) 4B.
• B) 3B/J.
• C) 4/J.
• D) B/J.

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Definitions:

Total Economic Cost

The sum of explicit and implicit costs, representing the total expense associated with producing a good or service.

Total Revenue

The overall amount of money generated by a business from its activities, such as sales of goods or services, before any expenses are subtracted.

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, often considered the cost of doing business.

Marginal Cost

The cost increase associated with the production of an extra unit of a product or service.