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

question 86

Multiple Choice

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

-Suppose the prices of goods X, Y, and Z are $4, $1, and $5, respectively, and the last unit purchased of good X has a marginal utility MU_x = 16 utils. At the point of equilibrium, the marginal utility of the last unit purchased of goods Y and Z will be:

• A)MU_y = 16 utils and MU_z = 16 utils, respectively.
• B)MU_y = 8 utils and MU_z = 2 utils, respectively.
• C)MU_y = 4 utils and MU_z = 20 utils, respectively.
• D)MU_y = 2 utils and MU_z = 4 utils, respectively.
• E)MU_y = 12 utils and MU_z = 20 utils, respectively.

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Definitions:

Overhead Cost

Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service but are necessary for the business to operate.

Activity Rates

The specific costs associated with particular business activities, measured to allocate resources or assess performance.

Direct-Labor-Hours

The total hours worked by employees that are directly involved in the manufacturing process.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead costs to products, calculated before the production period begins based on estimated costs and activity levels.