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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

The total utilities of the first 5 units of good X are 10,19, 26, 33, and 40 utils, respectively. In other words, the total utility of 1 unit is 10 utils, the total utility of 2 units is 19 utils, and so on. What is the marginal utility of the third unit?

To determine

Identify the marginal utility.

Explanation

Marginal utility (MU) can be calculated using the following formula:

Marginal utility=Change in total utilityChange in quantity (1)

Since the value of the total utility of the 3rd unit of X is 26 and the total utility of 2nd unit is 19, the marginal utility of the third unit can be calculated using Equation-1 as follows:

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