Smith says she gets 5 utils from consuming the fifth unit of a good whereas Jones says he gets 10 utils from consuming the fifth unit of a good. It follows that
A) the fifth unit of the good means more to Jones than Smith.
B) the fifth unit of the good means more to Smith than Jones.
C) the fifth unit of the good means twice as much to Jones as it means to Smith.
D) if the law of diminishing marginal utility holds, both Smith and Jones will get less utility from the sixth unit of the good than the fifth.
Correct Answer:
Verified
Q103: Which of the following statements is true?
A)An
Q104: Which of the following statements does not
Q105: Exhibit 20-3 Q107: Implicit in the solution to the diamond-water Q109: Smith, who has $10,000, receives an extra Q110: Jack receives 30 utils from one apple, Q111: This is the solution to the diamond-water Q111: Jones buys two goods, A and B. Q112: If the MU\P ratio for good X Q120: Economist David Friedman pointed out that
A)the endowment
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