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

According to the exhibit, consuming the first can of Pepsi yields 50 units of total utility, the second can yields an additional 36 units, and the third can yields an additional 10 units. Therefore, it can be inferred that a fourth can of Pepsi would yield an additional 18 units of total utility, bringing the total to 114 (50+36+10+18). Therefore, the correct answer is B.