Answer the Question on the Basis of the Following Marginal

question 4

Multiple Choice

Answer the question on the basis of the following marginal utility data for products X and Y.Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18. $\begin{array}{c}\begin{array}{c}\text {Units}\\\underline{\text {of X }}\\1\\2\\3\\4\\5\\6\end{array}\begin{array}{c}\text {Marginal}\\\underline{\text {Utility, X}}\\20\\16\\12\\8\\6\\4\end{array}\begin{array}{c}\text {Units}\\\underline{\text {of Y }}\\1\\2\\3\\4\\5\\6\end{array}\begin{array}{c}\text {Marginal}\\\underline{\text {Utility, Y}}\\16\\14\\12\\10\\8\\6\end{array}\end{array}$
Refer to the data.What level of total utility will the utility-maximizing consumer realize?

• A) 96 utils.
• B) 108 utils.
• C) 72 utils.
• D) 142 utils.

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Definitions:

Contingent Liability

A potential obligation that may arise in the future depending on the occurrence of a certain event.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity.

Numerical Probability

A quantifiable measure that expresses the likelihood of occurrence of an event, presented as a number between 0 and 1.

Gross Earnings

Gross Earnings are the total amount earned by an individual or entity before any deductions such as taxes, benefits, and other payroll deductions.