NARRBEGIN: Exhibit 6-5
Exhibit 6-5

-Consider Exhibit 6-5. 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

NARRBEGIN: Exhibit 6-5
Exhibit 6-5
 
-Consider Exhibit 6-5. 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

Looking at the table in Exhibit 6-5, we can see that adding a fourth can of Pepsi increases total utility from 96 to 114, which is an increase of 18. Therefore, answer choice B is true. Answer choice A is incorrect because it assumes that the third can of Pepsi increased total utility by 6, when in reality it increased it by 12. Answer choice C is incorrect because it only states the magnitude of the increase and doesn't specify the new total utility. Answer choices D and E are both incorrect because they don't reflect the actual numbers in the table.

NARRBEGIN: Exhibit 6-5 Exhibit 6-5