The Below Table Shows the Average Utility (In Utils) Obtained

question 1

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2. Mr. Max has only $20 to spend. If the marginal utility of the fourth unit of A is 12 and the marginal utility of the sixth unit of B is 12, then:

• A)he should not buy anything.
• B)he should buy more of A and less of B.
• C)he should buy less of A and more of B.
• D)he should buy A and B in the quantities indicated.
• E)he should buy more of A and little more than that of B.

---

Definitions:

Prototype Testing

The process of evaluating the preliminary version of a product under conditions that simulate real-world use, to identify improvements before mass production.

Conjoint Analysis

A statistical technique in market research to determine how consumers value different attributes that make up a product or service.

Utility

The total satisfaction received from consuming a good or service, often used in economics to explain choices made by individuals.