Assume That the Total Utilities Corresponding to the First Five

question 136

Multiple Choice

Assume that the total utilities corresponding to the first five units of a product consumed are 14, 20, 25, 29, and 32, respectively.The marginal utility of the third unit is:

• A) 5.
• B) 6.
• C) 20.
• D) 25.

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Definitions:

Market Power

The ability of a firm or group of firms to influence or control prices or output in a particular market.

Barriers to Entry

are obstacles that make it difficult for new competitors to enter an industry, including high startup costs, strict regulations, and established brand loyalty.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical.

Monopolies

Market structures characterized by a single seller controlling a large portion of the market and the lack of viable competition.