Exhibit 6-7
-Consider Exhibit 6-7. Which of the following is true?
A) A fourth can of Pepsi increases total utility by 12, to 126.
B) A fourth can of Pepsi increases total utility by 18, to 114.
C) A fourth can of Pepsi increases total utility by 114.
D) All four cans of Pepsi together yield a total utility of 18.
E) All four cans of Pepsi together yield a total utility of 322.

Question

Exhibit 6-7 
-Consider Exhibit 6-7. Which of the following is true?
A) A fourth can of Pepsi increases total utility by 12, to 126. 
B) A fourth can of Pepsi increases total utility by 18, to 114. 
C) A fourth can of Pepsi increases total utility by 114. 
D) All four cans of Pepsi together yield a total utility of 18. 
E) All four cans of Pepsi together yield a total utility of 322.

Quizplus · Accepted Answer

From the exhibit, we can see that consuming the first can of Pepsi yields a total utility of 60, the second can yields a total utility of 36, and the third can yields a total utility of 18. Therefore, consuming a fourth can of Pepsi will increase the total utility. The difference between the third and fourth can is 12. Therefore, the fourth can of Pepsi increases total utility by 18, to 114. Therefore, option B is true.

Exhibit 6-7 -Consider Exhibit 6-7. Which of the Following Is True