Elaine values the utility of her first cup of coffee at $1; a second cup, $.75; and a third cup, $.50. If Elaine drinks three cups of coffee for breakfast, her marginal utility is equal to
A. $.50, the value of her last cup of coffee.
B. $1.00, the value of her first cup of coffee.
C. marginal utility.
D. $2.25.
E. $1.50.
Answer: A
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A) positively sloped B) leftward shift of the C) rightward shift of the D) movement along the
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What will be an ideal response?
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