Question
Use the information in table 3 below to answer questions 38 - 40. The table shows Martha's Total Utility for ice cream. Table 4: Martha's
Use the information in table 3 below to answer questions 38 - 40. The table shows Martha's Total Utility for ice cream.
Table 4: Martha's Utility Schedule
Quantity (cups) | Total Utility | Marginal Utility | Consumer Surplus |
0 | -- | ||
1 | 250 | ||
2 | 520 | ||
3 | 680 | ||
4 | 800 | ||
5 | 890 |
What is the total utility and marginal utility for three cups and the third cup of ice cream respectively?
a.
680 and 120
b.
680 and 220
c.
680 and 160
d.
680 and 250
Clear my choice
Question 39
Not yet answered
Marked out of 2.00
Flag question
Question text
Assume that Martha consumes a 4th cup of ice cream, what would be her consumer surplus if the expected cost of a cup of ice cream is $160?
a.
$110
b.
-$40
c.
-$70
d.
$20
Clear my choice
Question 40
Not yet answered
Marked out of 1.00
Flag question
Question text
At what level of consumption did diminishing marginal utility set in?
a.
After the 3rd cup because the consumer surplus is negative
b.
After the 2nd; cup because that is where the marginal utility begins to decline
c.
After the 5th cup because marginal utility is at its lowest
d.
After the 1st cup because marginal utility was zero before
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started