If a Consumer Receives 20 Units of Utility from Consuming

question 100

Multiple Choice

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

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

---

Definitions:

Spillover Benefit

An advantage that results from an activity or product but benefits those who are not directly involved in its production or consumption.

Pollution Abatement

The reduction or elimination of pollution to protect the environment, typically involving strategies and technologies to control emissions and contaminants.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Marginal Benefit

The additional satisfaction or utility derived by consuming or producing one more unit of a good or service.