If the Marginal Utility of the 3^rd Cup of Coffee

question 89

Multiple Choice

If the marginal utility of the 3^rd cup of coffee is 23 and the marginal utility of the 4^th cup is 15,then

• A)it is optimal for the consumer to have 3 cups of coffee.
• B)the price of a cup of coffee must be relatively low.
• C)it is optimal for the consumer to have 4 cups of coffee.
• D)there is evidence of the law of diminishing marginal utility.

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Definitions:

Securities Act

A federal law enacted in 1933 that governs the sale of securities to protect investors from fraudulent practices.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts under the protection of the federal bankruptcy court.

Scienter

The knowledge of wrongdoing or fraudulent intent in the commission of a fraudulent act.

Negligent Performance

The failure to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.