Complete Table 19 Table 193
Michael's Utility Schedule the Marginal Utility Per Dollar of Per

question 35

Multiple Choice

Complete Table 19.3 below.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.
$\begin{array}{llllll}\text { Units of}&\text { TU of}&\text {MU of }&\text { Units of}&\text {TU of }&\text {MU of }\\ \text {Cola }&\text { Cola}&\text {Cola }&\text {Pretzels }&\text { Pretzels}&\text {Pretzels }\\\hline 1&40&40&1&30&30\\2&\_\_\_&32&2&\_\_\_&20\\3&96&24&2&66&16\\4&112&\_\_\_&5&84&\_\_\_&\end{array}$
Table 19.3
Michael's Utility Schedule The marginal utility per dollar of the third pretzel is

• A) 4.
• B) 5.
• C) 6.
• D) 12.

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Definitions:

Marginal Social Benefit

The additional gain to society as a whole from consuming or producing one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one extra unit of a good or service.

Nonrival

A good or service that can be consumed by one individual without preventing the consumption of the good by another individual.

Nonexcludable

A characteristic of a public good, indicating that it is not feasible to prevent non-paying customers from consuming the good.