Asked by Katherine Hornsby on May 10, 2024

verifed

Verified

If the price of action figures was $10 each,his total utility would be ____ and your marginal utility would be ___.

A) $30 and $10
B) $36 and $12
C) $36 and $10
D) $26 and $12
E) $50 and $6

Marginal Utility

The incremental pleasure or benefit a person achieves by consuming an additional unit of a good or service.

Total Utility

The total satisfaction or benefit a consumer derives from consuming a particular quantity of goods or services.

  • Compute the marginal and total utility derived from specified data.
  • Analyze demand and utility figures to assess how changes in price affect consumer surplus.
verifed

Verified Answer

SE
Sandra Eliza SajiMay 15, 2024
Final Answer :
C
Explanation :
The total utility at a price of $10, which corresponds to purchasing 3 action figures, is the sum of the marginal utilities of the first three figures. Without explicit values, we assume a decreasing marginal utility with each additional figure. Thus, the total utility would be the highest for the first figure and decrease with each additional figure. Since specific marginal utilities aren't provided, we infer from the pattern of demand that the total utility up to 3 figures is maximized at this price point, aligning with consumer behavior. The marginal utility for the third figure specifically would be the additional utility gained from the third figure, which is implied to be lower than the first two, reflecting the principle of diminishing marginal utility. Given the lack of explicit marginal utility values, the correct answer is inferred based on typical economic principles rather than direct calculation.