Question

6. Joni receives 8 utils from drinking her first glass of water and 5 utils from watching her favorite television show. Which statement is TRUE? A) All else constant, Joni would prefer to drink a glass of water than watch TV. B) Joni should never watch television. C) Because tap water has no price, its utility value must be zero and Joni is irrational. D) Joni's preferences are wrong because water is a necessity.

Answer 1

Answer-6 The correct option is A.) All else constant, Joni would prefer to drink a glass of water than watch TV.

Because marginal utility from drinking a glass of water is greater than watching TV, it will be preferred.

Answer-7 The correct option is A.) 50;150

Marginal utility from first jelly Bean is 50

Total utility from eating 5 jelly beans is 150(50+40+30+20+10)