The table below shows the total utility () and marginal utility () derived by a consumer from consuming successive slices of meat pie:
| Slices Consumed () | Total Utility () in utils | Marginal Utility () in utils |
|---|---|---|
| 1 | 18 | 18 |
| 2 | 32 | 14 |
| 3 | 42 | 10 |
| 4 | 48 | |
| 5 | 48 | 0 |
| 6 | 40 | -8 |
What is the value of , representing the marginal utility derived from the slice of meat pie?
- utilsAnswer
- Butils
- Cutils
- Dutils
Answer
The marginal utility of the slice () is utils.
Marginal utility is the change in total utility resulting from a one-unit change in consumption (). For the slice, utils.
Step-by-Step Solution
Key Concept
Calculation of Marginal Utility from Total Utility Schedule under the Law of Diminishing Marginal Utility
Estimated Time:1m 0s