Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Table 19.3
Michael's Utility Schedule
$\begin{array} { | c | r | c | c | c | c | }
\hline \begin{array} { c }
\text { Units of } \
\text { Cola }
\end{array} & \text { TU of Cola } & \begin{array} { c }
\text { MU of } \
\text { Cola }
\end{array} & \begin{array} { c }
\text { Units of } \
\text { Pretzels }
\end{array} & \begin{array} { c }
\text { TU of } \
\text { Pretzels }
\end{array} & \begin{array} { c }
\text { MU of } \
\text { Pretzels }
\end{array} \
\hline 1 & 46 & 40 & 1 & 30 & 30 \
\hline 2 & & 32 & 2 & & 20 \
\hline 3 & 96 & 24 & 3 & 66 & 16 \
\hline 4 & 112 & & 4 & 78 & \
\hline 5 & 124 & & 5 & 84 & \
\hline
\end{array}$ In Table 19.3,what is the total utility of two units of cola?
A)32.
B)40.
C)72.
D)96.

Question

Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Table 19.3
Michael's Utility Schedule
$\begin{array} { | c | r | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Units of } \
\text { Cola }
\end{array} & \text { TU of Cola } & \begin{array} { c } 
\text { MU of } \
\text { Cola }
\end{array} & \begin{array} { c } 
\text { Units of } \
\text { Pretzels }
\end{array} & \begin{array} { c } 
\text { TU of } \
\text { Pretzels }
\end{array} & \begin{array} { c } 
\text { MU of } \
\text { Pretzels }
\end{array} \
\hline 1 & 46 & 40 & 1 & 30 & 30 \
\hline 2 & & 32 & 2 & & 20 \
\hline 3 & 96 & 24 & 3 & 66 & 16 \
\hline 4 & 112 & & 4 & 78 & \
\hline 5 & 124 & & 5 & 84 & \
\hline
\end{array}$ In Table 19.3,what is the total utility of two units of cola?
A)32.
B)40.
C)72.
D)96.

Quizplus · Accepted Answer

The total utility (TU) of two units of cola is the sum of the marginal utilities (MU) of the first and second units. The MU of the first unit is 40, and the MU of the second unit is 32. Therefore, TU = 40 + 32 = 72.

Assume the Price of Cola Is $8 Per Unit and the Price