The table below presents the utility schedule for a consumer consuming successive units of commodity X: | Units of Commodity X (Q) | Total Utility (TU in utils) | | :---: | :---: | | 1 | 18 | | 2 | 32 | | 3 | 42 | | 4 | 48 | | 5 | 48 | What is the marginal utility (MU) derived from consuming the 4^{

The table below presents the utility schedule for a consumer consuming successive units of… — JAMB UTME

The table below presents the utility schedule for a consumer consuming successive units of commodity $X$ :

What is the marginal utility ( $MU$ ) derived from consuming the $4^{\text{th}}$ unit of commodity $X$ ?

The marginal utility derived from consuming the 4th unit of commodity X is 6 utils.

Marginal utility (

MU

) is defined as the addition to total utility derived from the consumption of an extra unit of a commodity (

MU = \frac{\Delta TU}{\Delta Q}

). For the 4th unit,

MU = TU_4 - TU_3 = 48 - 42 = 6

utils.

Identify the formula for Marginal Utility (MU)

The formula is

MU_n = TU_n - TU_{n-1}

, where

n

is the unit number.

Marginal utility measures the extra satisfaction gained from consuming one additional unit of a good.

Extract Total Utility values from the table for

Q = 4

and

Q = 3

TU_4 = 48

utils and

TU_3 = 42

utils.

To calculate the addition to total utility from the 4th unit, we compare total utility at 4 units with total utility at 3 units.

Compute the difference to find

MU_4

MU_4 = 48 - 42 = 6

utils.

Subtracting

TU_3

from

TU_4

yields the exact marginal contribution of the 4th unit.

Calculation and Interpretation of Marginal Utility

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