Microeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859484
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Chapter 7, Problem 1E
To determine
(a)
Graphical representation of total utility.
Expert Solution
Explanation of Solution
| No. of utils | Total Utility | |
| 1st | 300 | 300 |
| 2nd | 250 | 550 |
| 3rd | 220 | 770 |
| 4th | 160 | 930 |
| 5th | 100 | 1030 |
| 6th | 50 | 1080 |
| 7th | 20 | 1100 |
| 8th | 0 | 1100 |
| 9th | -250 | 850 |
Economics Concept Introduction
Total Utility is defined as the aggregate of total satisfaction that a consumer consumes for a specific good or service.
Marginal utility is defined as the addition to the total utility which is derived after consuming an additional unit.
To determine
(b)
Graphical representation of Marginal utility.
Expert Solution
Explanation of Solution
Economics Concept Introduction
Marginal utility is the addition to total utility when one more unit of good is consumed.
To determine
(c)
Marginal utility value at which total utility reach a maximum.
Expert Solution
Explanation of Solution
At 8TH unit, total utility is at its maximum and marginal utility is 0.
Economics Concept Introduction
Marginal utility is the addition to total utility when one more unit of good is consumed.
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Students have asked these similar questions
D
Quantity
Refer to the graph shown. Between points B and D, marginal utility is:
increasing, and so total utility is falling.
increasing, and so total utility is at its maximum.
positive, and so total utility is falling.
positive, and so total utility is increasing.
Marginal Utility
Number of Units
1
23
4
5
6
Total
Utility
40
80
140
182
222
230
Refer to the table. What is the marginal utility of the third unit?
Marginal Utility
B
C
D
Quantity
Refer to the graph shown. Between points C and D, marginal utility is:
positive, and so total utility is increasing.
decreasing, and so total utility is at its maximum.
positive, and so total utility is falling.
decreasing, and so total utility is falling.
Chapter 7 Solutions
Microeconomics (MindTap Course List)
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