Homework SourseQuestion 11 At quantity 1 total utility is 20 At quantity 2
Question 11
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
QUESTION 12
The previous question demonstrates
marginal utility is downward-sloping
total utility is upward-sloping
total utility is downward-sloping
a and b
| a. | 20; 55 | |
| b. | 4; 20 | |
| c. | 4; 24 | |
| d. | 20; 4 | |
| e. | 20; 162 |
Solution
a. marginal utility is downward sloping.
As per the law of diminishing marginal utility, the marginal utility decreases as more quantities are consumed. Thus, here the marginal utility decreases from 20 to 4, ie a downward slope.
