The Following Table Shows the Marginal Utility of Each Additional

question 67

Multiple Choice

The following table shows the marginal utility of each additional unit of pretzel for a consumer. The first column of the table shows the number of pretzels consumed in a day, and the second column of the table shows the marginal utility of each additional unit of pretzel. The total utility derived from the consumption of three pretzels is _____ units. ​
Table 6.1
​

• A)5
• B)15
• C)40
• D)55
• E)70

---

Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding all other inputs constant.

Diminishing Returns

The decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while other factors are kept constant.

Average Cost

The total cost of production divided by the number of goods produced.

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.