A consumer's consumption schedule for glasses of fresh juice reveals the following Total U… — JAMB UTME

A consumer's consumption schedule for glasses of fresh juice reveals the following Total Utility ( $TU$ ) values: $36$ utils for $3$ glasses, $48$ utils for $4$ glasses, $55$ utils for $5$ glasses, $55$ utils for $6$ glasses, and $49$ utils for $7$ glasses. Based on this utility schedule, match each utility metric or milestone listed on the left with its corresponding calculated value or quantity on the right.

Average Utility ( $AU$ ) when consuming $4$ glasses of juice $12$ utils per glass
Marginal Utility ( $MU$ ) derived from the $5^{\text{th}}$ glass of juice $7$ utils
Quantity of consumption ( $Q$ ) at the consumer's point of saturation $6$ glasses
Marginal Utility ( $MU$ ) derived from the $7^{\text{th}}$ glass of juice $-6$ utils

Answer

Average Utility at 4 units matches 12 utils per glass; Marginal Utility of the 5th unit matches 7 utils; Quantity at point of saturation matches 6 glasses; Marginal Utility of the 7th unit matches -6 utils.

Each utility concept correctly pairs with its mathematical derivation from the schedule:

AU

4

units equals

12

utils per glass (

48/4

);

MU

of the

5^{\text{th}}

unit equals

7

utils (

55-48

); saturation point is reached at

6

glasses where

MU = 0

; and

MU

of the

7^{\text{th}}

unit equals

-6

utils (

49-55

Step-by-Step Solution

Calculate Average Utility (

AU

) at

4

glasses.

AU_4 = \frac{TU_4}{Q_4} = \frac{48}{4} = 12

utils per glass.

Average Utility is defined as Total Utility divided by the total number of units consumed.

Calculate Marginal Utility (

MU

) for the

5^{\text{th}}

glass.

MU_5 = TU_5 - TU_4 = 55 - 48 = 7

utils.

Marginal Utility measures the change in Total Utility resulting from consuming one additional unit.

Identify the point of saturation (

MU = 0

Q = 6

TU

remains unchanged at

55

utils, giving

MU_6 = 55 - 55 = 0

. Thus,

6

glasses is the saturation point.

Consumer saturation occurs when Total Utility reaches its maximum level and Marginal Utility drops to zero.

Calculate Marginal Utility (

MU

) for the

7^{\text{th}}

glass.

MU_7 = TU_7 - TU_6 = 49 - 55 = -6

utils.

When consumption exceeds the saturation point, Total Utility decreases, yielding negative Marginal Utility (disutility).

Key Concept

Concepts of Utility (Total, Average, and Marginal Utility)

Estimated Time:1m 30s

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