Exercise 2:1. The table below shows the marginal utility of good A, good B and good C for Betty.Marginal Utilityfor good A(MU.)Marginal Utilityfor good B(MU.)Marginal Utilityfor good C(MU.)Unit of goods11839122.1636101433412301027624Suppose Betty has RM26 to spend on these three goods. The prices of good A, good B andgood C are RM2, RM3 and RMI, respectively. What combination of three goods shouldbe purchased in order to maximise utility?a.b. Based on the answer 1(a), what is the total utility derived by Betty?C. Distinguish between "total utility' and 'marginal utility.d. Briefly explain the TWO (2) conditions that must be fulfilled for a consumer to maximiseutility.e.Define the Law of Diminishing Marginal Utility

Since you have posted multiple parts question, we will solve the first three parts for you. If you…

Exercise 2: 1. The table below shows the marginal utility of good A, good B and good C for Betty. Marginal Utility Marginal Utility for good A (MU.) Marginal Utility for good C (MU.) Unit of goods for good B (MU.) 1 18 39 12 16 36 10 14 33 4 12 30 8 10 27 6 24 6. a Suppose Betty has RM26 to spend on these three goods. The prices of good A, good B and good C are RM2, RM3 and RM1, respectively. What combination of three goods should be purchased in order to maximise utility? b. Based on the answer 1(a), what is the total utility derived by Betty? c. Distinguish between 'total utility and 'marginal utility".