The table below represents how Marco feels about chocolate candy bars

| April 14, 2018

1.
The table below represents how
Marco feels about chocolate candy bars.

a. Fill in the missing
values for total and marginal utility.

Marco’s Utility

Chocolate Candy Bars

Total Utility
(utils)

Marginal Utility
(utils)

0

0

1

25

2

17

3

54

4

5

66

4

6

–1

b. Suppose Marco
currently has two candy bars. You tell Marco you will give him either a
soda, which gives him 22 utils of happiness, or two additional candy
bars. Which is he likely to prefer?
Soda or Candy?

2.

Marginal utility can be
A.
positive, but not
negative.
B.
positive or negative, but not
equal to zero.
C.
positive, negative, or equal to
zero.
D.
decreasing, but not negative.

3. Total utility is best defined as the
A.
change in marginal utility
multiplied by the price of a product.
B.
maximum amount of satisfaction
from consuming a product.
C.
total satisfaction received
from consuming a good, service, or combination of goods and services.
D.
additional satisfaction
received from consuming an additional unit of a good or service.

4.A
consumer with a limited income will maximize utility when each good is
purchased in amounts such that the
A.
total utility is the same for
each good in a bundle.
B.
marginal utility of each good
in a bundle is maximized.
C.
marginal utility per dollar
spent on each of the final choices in a bundle is equal.
D.
marginal utility per dollar
spent on each of the final choices in a bundle is maximized for each good.

5.
Sharon purchases two products, X and Y, with a given fixed
budget. The marginal utility she receives from the last unit of X she consumes
is 60 utils, and the marginal utility she receives from the last unit of Y she
consumes is 30 utils. The price of X is $2.00 and the price of Y is $1.00.
Based on the equal marginal principle, these data suggest that Sharon
A. is
maximizing her total utility from the given fixed budget.
B.
should buy more X and less Y.
C.
should buy more Y and less X.
D. should buy less Y and X.

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