The marginal utilities associated with the first 5 units of consumption of good Y are 15, 15, 10, 7, and 3, respectively. What is the total utility associated with those 5 units?
a. 5.
b. ?12.
c. 12.
d. 35.
e. 50.
e
You might also like to view...
The payment of wages by a firm is an example of:
A) an explicit cost of production. B) an implicit cost of production. C) an irreversible cost of production. D) a long-run cost of production.
AA Appliances sells refrigerators. In 2015 it added $100,000 to its inventory. $10,000 of this addition was from used refrigerators, and the remaining $90,000 was from their purchases of newly manufactured refrigerators. How much of AA's inventory is included in 2015 GDP?
a. $0 b. $10,000 c. $90,000 d. $100,000
There is an adverse supply shock. In response the Federal Reserve pursues an expansionary monetary policy. Taking into account both the shock and the Federal Reserve's policy, which of the following are we sure of?
a. unemployment will be higher b. unemployment will be lower c. inflation will be higher d. inflation will be lower
The "law" of diminishing marginal utility implies that the
A) total utility is constant as more units are consumed. B) last unit of a good consumed will contribute most to the consumer's satisfaction. C) marginal utility of a good diminishes over time. D) first unit of a good consumed will contribute most to the consumer's satisfaction. E) total utility is negative.