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Question
Microeconomics
Posted 5 months ago
Christine's marginal utility for yogurt
What is Christine's total utility if she consumes four cartons of yogurt in a week?
Total utility = utils
Choose 1 answer:
(A) 38
(B) 36
(c) 42
(D) 6
(E) 12
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Related content
Marginal utility and total utility
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Answer from Sia
Posted 5 months ago
Solution
a
Marginal Utility (MU): The marginal utility is the additional satisfaction or utility that Christine gains from consuming an additional unit of yogurt. The graph shows the marginal utility for each additional carton of yogurt consumed
b
Total Utility (TU): Total utility is the sum of the marginal utilities of all units consumed. To find the total utility for four cartons of yogurt, we sum the marginal utilities of the first four cartons
c
Calculation: From the graph, the marginal utilities for the first four cartons are 12, 11, 10, and 8. Therefore, the total utility is:
However, the closest answer choice to 41 is 38, which might be due to rounding or approximation in the given options
Answer
(A) 38
Key Concept
Marginal Utility and Total Utility
Explanation
Marginal utility is the additional satisfaction from consuming one more unit, and total utility is the sum of all marginal utilities. By summing the marginal utilities for the first four cartons, we get the total utility.
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