Asked by Maryann Fitzgerald on May 09, 2024
Verified
If the total utility from consuming five units of a product is 245 and the marginal utility of a sixth unit is 5, then the total utility from consuming six units would be
A) 240.
B) 250.
C) 49.
D) 1,225.
Marginal Utility
The increased gratification obtained by a consumer from the consumption of one more unit of a good or service.
Total Utility
The total satisfaction or benefit received by consuming a particular quantity of goods or services.
- Familiarize oneself with and execute the marginal utility concept.
- Determine the total utility using information on marginal utility.
Verified Answer
FD
Firass DandashyMay 09, 2024
Final Answer :
B
Explanation :
Total utility from consuming six units is the sum of the total utility from the first five units (245) and the marginal utility of the sixth unit (5), which equals 250.
Learning Objectives
- Familiarize oneself with and execute the marginal utility concept.
- Determine the total utility using information on marginal utility.
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