Answer the Question Based on the Table Below Showing the Marginal

question 81

Multiple Choice

Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4, and the price of product Y is $2. The income of the consumer is $20.
If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?

• A) a first unit of X followed by a first unit of Y
• B) a first unit of X followed by a second unit of X
• C) a first unit of Y followed by a first unit of X
• D) a first unit of Y followed by a second unit of Y

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Definitions:

Direct Costs

Costs that can be traced directly to the production of specific goods or services, such as raw materials and labor.

Direct Manufacturing Cost

Expenses directly associated with the production of goods, including labor and materials.

Units Produced

The aggregate count of finished products produced over a designated time frame.

Direct Manufacturing Cost

Expenses directly associated with the production of goods, including raw materials and direct labor costs.