At quantity 1 total utility is 20 At quantity 2 total utilit
At quantity 1 total utility is 20
At quantity 2 total utility is 36
At quantity 3 total utility is 51
At quantity 4 total utility is 55
What is the marginal utility at
quantity 1? and at quantity 4?
20; 55
4; 20
4; 24
20; 4
20; 162
| a. | 20; 55 | |
| b. | 4; 20 | |
| c. | 4; 24 | |
| d. | 20; 4 | |
| e. | 20; 162 |
Solution
At quantity 1, the marginal utility is the same as the total utility that is 20.
At quantity 4, marginal utilitity = Total utility at unit 4 - total utility at unit 3 = 55 - 51 = 4
Thus, correct choice is d. 20;4
