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If x units of a good result in the willingness to forego y units of another good:

A) The consumer is willing to give up less than 16 units of y for the 16th unit of x.
B) The consumer is willing to give up exactly 16 units of y for the 16th unit of x.
C) The consumer is willing to give up more than 16 units of y for the 16th unit of x.
D) Cannot be determined from the information provided.

User Chrisli
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1 Answer

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Final answer:

The correct answer is D) Cannot be determined from the information provided, as the marginal utility and opportunity cost of the 16th unit of good x is not given, making it impossible to determine the exact willingness to trade.

Step-by-step explanation:

The question is related to the concept of marginal utility and opportunity cost in economics. A consumer's willingness to trade one good for another is determined by the marginal utility they derive from each subsequent unit of the good consumed. As more units of a good are consumed, such as bus tickets in the provided example, the marginal utility for each additional unit decreases, while the opportunity cost, in this case, the marginal utility of the foregone good (burgers), increases. Thus, when deciding whether the consumer is willing to give up more, less, or exactly 16 units of good y for the 16th unit of good x, the correct answer would be D) Cannot be determined from the information provided. This is because there is no specific information given about the marginal utility or the opportunity cost associated with the 16th unit of x.

User Scoobler
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