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

question 40

Multiple Choice

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

-It is often observed that, over the same period of time and for the same good, marginal utility declines rapidly for some consumers and very little for others. This observation illustrates:

• A)that economic theory is of little value in explaining consumer behavior.
• B)that consumers are not identical.
• C)tastes and preferences should not be included in any discussion of consumer choice.
• D)tastes and preferences among consumers are quite similar.
• E)that if consumers weren't identical, economic theory would not be able to provide insight into consumer behavior.

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Definitions:

True Average Age

The actual mean age of a group or population, accurately representing the central tendency without bias.

Sample Size

The number of observations or units in a sample taken from a population for the purpose of statistical analysis.

Critical Value

A threshold value that is compared with the test statistic to determine whether the null hypothesis should be rejected in hypothesis testing.

True Average Weight

The actual mean weight calculated across a specified population or sample.