Question: Alex is consuming candy bars that cost $1 each. When he purchases the 5th candy bar his total utility increases from 6 utils to

Alex is consuming candy bars that cost $1 each. When he purchases

Alex is consuming candy bars that cost $1 each. When he purchases the 5th candy bar his total utility increases from 6 utils to 8 utils. What is the marginal utility of the 5th candy bar?

Step by Step Solution

★★★★★

3.48 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Alex purchased 4 candy bars previously with a total ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (2 attachments)

663dcb52aa5a9_962069.pdf

180 KBs PDF File

663dcb52aa5a9_962069.docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

One of those basic product costs is overhead. Describe the 3 components of overhead and give an example for each one as it relates to Donuts for Delivery

42. You invest 55% of your money in security A with a beta of 1.4 and the rest of your money in security B with a beta of 0.9. The beta of the resulting portfolio is A. 1.466 B. 1.157 C. 0.968 D....

The table below shows how Brett's utility increases as the number of avocados he consumes (per month) increases. Brett's utility is measured in utils, a name that economists invented to describe...

DONT EXPLAIN JUST TYPE LETTER ONLY THANKS Question 1 If a consumer consumes two goods, A and B, and the price of A falls, then the substitution effect would cause the consumer to: a. buy less A and...

Please help me answer this, I will rate your work for sure if that is true Question 1 (Multiple Choice Worth 2 points) (01.03 MC) On a production possibilities curve (PPC), an improvement in the...

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

6 | Consumer Choices Figure 6.1 Investment Choices Higher education is generally viewed as a good investment, if one can afford it, regardless of the state of the economy. (Credit: modification of...

Which of the following are methods used to finance a corporation? Question 1 options: Selling of stocks in the secondary market (stocks bought/sold between investors in exchanges like the New York...

Question 5 (1 point) At the farmer's market in Irvine, California, the price of avocados is set at $3 each. At that price, 120 avocados are supplied but only 100 are purchased. Represent this on a...

Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet Expected sales (in cases) 50,000 10,000 Selling price...

Rockwood Company issued $100,000 of 10% bonds on November 1, 2007 at 103. Interest on the bonds is payable on November 1 and May 1 of each year, and the maturity date is November 1, 2017. Rockwood...

The major output of financial accounting is a set of statements including the balance sheet, income statement, and statement of cash flows. general journal, cash budget, and capital budget. dividend...

. A hollow shaft has an external diameter of 300 mm and an internal diameter of 150 mm. Compare its strength with that of a solid shaft of the same weight per unit length.

A circular steel pipe of external diameter 60 mm and thickness 8 mm is used as a simply supported beam over an effective span of 2 m. If permissible stress in steel is 150 N/mm2, determine the...

A simply supported beam of span 3.0 m has a cross-section 120 mm 180 mm. If the permissible stress in the material of the beam is 10 N/mm^2, determine maximum udl it can carry.

Draw the shear force and bending moment diagram for the beams shown below 4 kN 4 kN/m 10 kN.m to +3m--2 m-|+3m-2 m- A B E

A shaft carries five masses A, B, C, D and E which revolve at the same radius in planes which are equidistant from one another. The magnitude of the masses in planes A, C and D are 50 kg, 40 kg and...

Suppose there are two types of basketball playersblack and white. Suppose also that, on average, black players are no better and no worse than white players. Furthermore, suppose there are only two...

Using marginal utility theory, discuss why newspaper publishers are prepared to use vending machines that allow customers to pay for one newspaper and remove several, whereas candy and soft-drink...

Consider the following industries in Canada that have traditionally been oligopolistic. Brewing Airlines Railways Banking Internet service providers Grocery stores a. What are the barriers to...

=+striking out the last batter, or impressing an audience? How might arousal influence performance in those cases?

=+4. In many professions, people are forced to perform under conditions of very high arousal. These

=+How might that person feel when faced with being on the spot, trying to sink a winning free throw,