If the Total Utility for Eating Up to Five $2

question 62

Multiple Choice

If the total utility for eating up to five $2.00 hamburgers is 40,60,70,75,70,respectively,which of the following is true?

• A) A rational consumer would choose to eat five hamburgers at the price of $2.00
• B) A rational consumer would choose to eat five hamburgers only if the price was reduced to $1.00.
• C) A rational consumer would choose to eat five hamburgers only if the 5^th hamburger as free.
• D) A rational consumer would have to be compensated to eat the 5^th hamburger.

---

Definitions:

Equilibrium

A state of balance or stability within a system where opposing forces or influences are equal and cancel each other out.

Marginal Utility

The supplementary satisfaction or advantage received from consuming one more unit of a good or service.

Utility Maximization

An economic principle that suggests individuals seek to achieve the highest level of satisfaction possible with their available resources.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, benefits, and investment income.