A consumer derives a total utility of 85 utils from consuming 5 plates of rice. If the mar… — JAMB UTME

A consumer derives a total utility of $85$ utils from consuming $5$ plates of rice. If the marginal utility derived from the $6^{\text{th}}$ plate is $7$ utils and the marginal utility from the $7^{\text{th}}$ plate is $3$ utils, what is the total utility derived from consuming $7$ plates of rice?

Answer: 95 utils

Answer

The total utility derived from consuming 7 plates of rice is 95 utils.

Total Utility (

TU

) is the cumulative sum of Marginal Utilities (

MU

) derived from each additional unit consumed. Starting from

TU_5 = 85

utils, consuming the

6^{\text{th}}

plate adds

7

utils to yield

TU_6 = 92

utils. Consuming the

7^{\text{th}}

plate adds another

3

utils, resulting in a total utility of

95

utils for

7

plates.

Step-by-Step Solution

Calculate the total utility after consuming 6 plates of rice

TU_6 = 92

utils

Total utility increases by the marginal utility of the

6^{\text{th}}

unit (

TU_6 = TU_5 + MU_6 = 85 + 7 = 92

utils).

Calculate the total utility after consuming 7 plates of rice

TU_7 = 95

utils

Total utility increases by the marginal utility of the

7^{\text{th}}

unit (

TU_7 = TU_6 + MU_7 = 92 + 3 = 95

utils).

Key Concept

Relationship between Total Utility and Marginal Utility under the Law of Diminishing Marginal Utility

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