The table above shows Tom's total utility from milkshakes and sodas. What is the marginal utility of the eighth soda?

Long-run average cost is defined as:

A) the minimum average cost of producing any level of output when all inputs are variable. B) the minimum average cost of producing any level of output when the amount of capital is varied and all other inputs are held constant. C) the average of the short-run costs associated with each amount of capital employed by the firm. D) the minimum average cost of producing any level of output when all inputs are fixed.

If a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that

a. the total expenditures (including those made by the third party) on the good will decline. b. the demand for the good will decrease. c. consumers will have a stronger incentive to economize on their use of the good. d. suppliers will have less incentive to provide the good at low prices.