The table below illustrates the utility schedule of a consumer consuming consecutive units of chocolate bars:
| Quantity Consumed () | Total Utility () in Utils | Marginal Utility () in Utils |
|---|---|---|
Based on the table, what is the Average Utility () of the consumer at units of consumption?
- utilsAnswer
- Butils
- Cutils
- Dutils
Answer
The Average Utility () of the consumer at units of consumption is utils.
Average Utility () measures satisfaction per unit of commodity consumed and is defined mathematically as . At units of consumption, the Total Utility () is utils. Dividing utils by units yields an Average Utility of utils.
Step-by-Step Solution
Key Concept
Calculation of Average Utility from a Total Utility Schedule
Estimated Time:1m 0s