Figure 9-1. the Figure Shows a Utility Function

question 375

Multiple Choice

Figure 9-1. The figure shows a utility function.

-Refer to Figure 9-1. Which distance along the vertical axis represents the marginal utility of an increase in wealth from $600 to $800?

• A) the distance between the origin and point B
• B) the distance between the origin and point C
• C) the distance between point A and point C
• D) the distance between point B and point C

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Definitions:

Graphical Origin

The point on a graph where the x-axis and y-axis intersect, typically representing the zero point for both axes.

Feasible Region

In optimization problems, the set of all possible points that satisfy the constraints, representing solutions that meet the problem's criteria.

Constraints

Limitations or restrictions that impact the options available for decision-making or problem-solving.

Linear Programming

A mathematical methodology for optimizing a linear objective function, subject to linear equality and linear inequality constraints.