The following table shows the total benefit that Jenny derives from consuming different quantities of chocolate.

-Refer to the table above.If the price of one chocolate is $2,the marginal benefit per dollar spent on the fourth unit of chocolate will equal ________.
A) $4
B) $2
C) $2.5
D) $5

Question

The following table shows the total benefit that Jenny derives from consuming different quantities of chocolate.
 
-Refer to the table above.If the price of one chocolate is $2,the marginal benefit per dollar spent on the fourth unit of chocolate will equal ________.
A) $4 
B) $2 
C) $2.5 
D) $5

Quizplus · Accepted Answer

To find the marginal benefit per dollar spent on the fourth unit of chocolate, we need to look at the change in total benefit from consuming the third to fourth unit of chocolate. The total benefit from consuming three chocolates is 22, and the total benefit from consuming four chocolates is 25.

The marginal benefit from consuming the fourth chocolate is therefore 25 - 22 = 3.

Since the price of one chocolate is $2, the marginal benefit per dollar spent on the fourth unit of chocolate is 3/2 = 1.5.

Therefore, the closest answer choice is C ($2.5) which is a multiple of 1.5.

The Following Table Shows the Total Benefit That Jenny Derives