Jamie's marginal utility from muffins and from doughnuts (in utils) is shown in the accompanying table. Jamie spends a total of $8 on muffins and/or doughnuts every morning. The price of each muffin is $2 and the price of each doughnut is $1.MuffinsPer DayMarginal UtilityPer MuffinDoughnutsPer DayMarginal UtilityPer Doughnut140220230415320510If Jamie consumes 3 muffins a day, then what is her marginal utility per dollar spent on the third muffin?

A. 30
B. 20
C. 10
D. 40


Answer: C

Economics

You might also like to view...

When productivity increases in the production of agricultural products, the supply curve for agricultural products shifts rightward

Indicate whether the statement is true or false

Economics

If we add together all the gains from specialization and trade and then subtract all the losses, the net result would be

A. Positive: a net gain for the world and each country. B. Negative: a net loss for the world and each country. C. Impossible to tell: the net result could be zero, positive, or negative. D. Zero: the gains and losses would cancel out.

Economics

If Pepsi increases its prices which of the following would NOT happen?

A. The demand for Pepsi would drop. B. The quantity demanded of Pepsi would drop. C. The demand for Coke would increase. D. The equilibrium price of Coke would rise.

Economics

To pursue higher rates of economic growth only when the advantages of the policy outweigh the sacrifices that must be made is an example of the:

A. principle of comparative advantage B. principle of increasing opportunity costs C. scarcity principle D. cost-benefit principle

Economics