Refer to the Information Provided in Table 6 -Refer to Table 6

question 23

Multiple Choice

Refer to the information provided in Table 6.1 below to answer the question(s) that follow.
Table 6.1
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hamburgers per } \\\text { Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\\hline 2 & 52 & \\\hline 3 & 67 & \\\hline 4 & 76 & \\\hline 5 & & 4 \\\hline \begin{array} { c } \text { Number of } \\\text { Sodas per Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 20 & \\\hline 2 & 35 & \\\hline 3 & 47 & \\\hline 4 & 57 & \\\hline 5 & & 7 \\\hline\end{array}$$
-Refer to Table 6.1. If the price of a soda is $2, the price of a hamburger is $6, and George has $14 of income, George's utility-maximizing combination of sodas and hamburgers per day is

• A) 1 soda and 2 hamburgers.
• B) 4 sodas and 1 hamburger.
• C) 3 sodas and 1.5 hamburgers.
• D) indeterminate from this information.

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Definitions:

Decreasing-Cost Industry

An industry where the cost per unit of output decreases as the scale of production increases is known as a decreasing-cost industry.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing for the adjustment of all inputs, leading to optimal allocation of resources in the market.

Increasing Cost Industry

An industry in which production costs increase as output expands, typically due to factors such as input limitations and increased demand for inputs.

Long-Run Supply Curve

A curve showing the relationship between price and quantity supplied that takes into account all possible adjustments in inputs and outputs.