Suppose that Wendy gets 15 units of utility from one muffin and 23 units of utility from two muffins. The principle of diminishing marginal utility implies that Wendy's total utility from three muffins will be units of utility. O exactly 8 O less than 8 more than 31

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
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Suppose that Wendy gets 15 units of utility from one muffin and 23 units of utility from two muffins. The principle of
diminishing marginal utility implies that Wendy's total utility from three muffins will be
units of utility.
O exactly 8
less than 8
more than 31
less than 31
Transcribed Image Text:Suppose that Wendy gets 15 units of utility from one muffin and 23 units of utility from two muffins. The principle of diminishing marginal utility implies that Wendy's total utility from three muffins will be units of utility. O exactly 8 less than 8 more than 31 less than 31
Assume a consumer buys only chocolate chip muffins and falafel and that the price of a chocolate chip muffin is $2, the
price of a falafel is $6, and the marginal utility of the last chocolate chip muffin consumed is 12. If the consumer is
purchasing the optimal consumption bundle, the marginal utility of the last falafel consumed is:
24.
12.
36.
.
Transcribed Image Text:Assume a consumer buys only chocolate chip muffins and falafel and that the price of a chocolate chip muffin is $2, the price of a falafel is $6, and the marginal utility of the last chocolate chip muffin consumed is 12. If the consumer is purchasing the optimal consumption bundle, the marginal utility of the last falafel consumed is: 24. 12. 36. .
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