When Sally Increases the Consumption of Pizza and Decrease the Consumption

question 175

Multiple Choice

When Sally increases the consumption of pizza and decrease the consumption of soda, her marginal utility of

• A) pizza falls and the marginal utility of soda will increase.
• B) both pizza and soda will decrease.
• C) pizza increases and the marginal utility of soda will fall.
• D) both pizza and soda will increase.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, representing the per unit cost of production.

Average Total Cost

Average Total Cost is the total cost of production divided by the total quantity produced, reflecting the cost per unit of output.

Average Fixed Cost

This is the total fixed costs of production divided by the number of units produced, reflecting how these costs spread out over the output.

Average Variable Cost

The total variable cost divided by the quantity of output produced.