If the Marginal Costs of 1, 2, and 3 Hours

question 61

Multiple Choice

If the marginal costs of 1, 2, and 3 hours of talking on the phone are $50, $75, and $105 respectively, then the total costs are of 1, 2 and 3 hours of talking on the phone are:

• A) $50, $150, and $315 respectively.
• B) $50, $41.67, and $115 respectively.
• C) $50, $125, and $230 respectively.
• D) $50, $175, and $405 respectively.

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Definitions:

Total Utility

The complete satisfaction or utility gained by consuming a certain amount or number of goods or services.

Beers

An alcoholic beverage typically made from water, malted barley, hops, and yeast.

Day

A period of 24 hours as a unit of time, representing the time taken by the Earth to complete one rotation with respect to the sun.

Utility

Refers to the total satisfaction received from consuming a good or service.