Asked by Kwama Kenyatta on May 06, 2024
Verified
If the marginal utility from consuming the fifth unit of a product is 6 and the total utility from all five units is 162, then the total utility from consuming four units must be
A) 168.
B) 27.
C) 156.
D) 972.
Marginal Utility
The incremental utility or joy received when one more unit of a good or service is consumed.
Total Utility
The absolute gratification obtained through the intake of a certain quantity of products or services.
- Develop an understanding of marginal utility and put it to use.
- Calculate the aggregate utility utilizing marginal utility inputs.
Verified Answer
NK
nishika khubchandaniMay 12, 2024
Final Answer :
C
Explanation :
If the marginal utility from the fifth unit is 6, it means that the total utility from consuming four units is 162 - 6 = 156. This is because the marginal utility is the additional utility gained from consuming an additional unit, so subtracting it from the total utility gives the total utility from the previous unit. Therefore, the total utility from consuming four units is 156.
Learning Objectives
- Develop an understanding of marginal utility and put it to use.
- Calculate the aggregate utility utilizing marginal utility inputs.
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