The table below presents the total utility derived by a consumer from drinking successive glasses of water on a hot day: | Quantity of Water (Glasses) | Total Utility (Utils) | |---|---| | 1 | 15 | | 2 | 27 | | 3 | 36 | | 4 | 42 | | 5 | 42 | What is the marginal utility derived from consuming the 3r

The table below presents the total utility derived by a consumer from drinking successive … — JAMB UTME

The table below presents the total utility derived by a consumer from drinking successive glasses of water on a hot day:

What is the marginal utility derived from consuming the 3rd glass of water?

The marginal utility derived from consuming the 3rd glass of water is

9

utils.

Marginal utility (

MU

) is the change in total utility (

TU

) resulting from a one-unit increase in consumption (

MU_n = TU_n - TU_{n-1}

). For the 3rd glass of water,

MU_3 = TU_3 - TU_2 = 36 - 27 = 9

utils.

Identify the formula for Marginal Utility (

MU

)

MU = \Delta TU / \Delta Q = TU_n - TU_{n-1}

Marginal utility measures the addition to total utility from consuming one more unit of a good.

Extract Total Utility values for the 2nd and 3rd units from the table

TU_2 = 27

utils and

TU_3 = 36

utils

To find the marginal utility of the 3rd unit, subtract the total utility of 2 units from the total utility of 3 units.

Compute the difference in Total Utility

MU_3 = 36 - 27 = 9

utils

The extra satisfaction gained specifically from the 3rd glass of water is

9

utils.

Calculation of Marginal Utility from Total Utility Schedule

Estimated Time:45s