-Refer to Table 6-7

question 177

Multiple Choice

-Refer to Table 6-7. What is Antonio's marginal utility from consuming the fifth beer?

• A) 4 utils
• B) 13.6 utils
• C) 69 utils
• D) 134 utils

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Definitions:

Externalities

Costs or benefits that affect parties who did not choose to incur that cost or benefit.

Produced

Refers to goods or services that have been created as a result of a manufacturing or production process.

Coase Theorem

An economic theory proposing that under conditions of no transaction costs, parties can negotiate and arrive at efficient resource allocation and solution to externalities regardless of initial property rights allocation.

Number Of People

A quantitative measure of the people involved or affected in a particular context.