1. Based on the table below describe Marginal Utility and Diminishing Marginal Utility? What happens as you consume more and more apples? At what point is utility maximised? Units of Apples Consumed Total Utility (TU) Marginal Utility (MU) 1 10 10 2 18 8 3 24 6 4 28 4 5 30 2 6 30 0 7 28 -2

1. Based on the table below describe Marginal Utility and Diminishing Marginal Utility? What happens as you consume more and more apples? At what point is utility maximised? Units of Apples Consumed Total Utility (TU) Marginal Utility (MU) 1 10 10 2 18 8 3 24 6 4 28 4 5 30 2 6 30 0 7 28 -2

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 1.3P

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Question

1. Based on the table below describe Marginal Utility and Diminishing Marginal Utility? What happens as you consume more and more apples? At what point is utility maximised?

Units of Apples Consumed	Total Utility (TU)	Marginal Utility (MU)
1	10	10
2	18	8
3	24	6
4	28	4
5	30	2
6	30	0
7	28	-2

Definition Definition Satisfaction derived from the consumption of an additional unit of any commodity.

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