   Chapter 7, Problem 3WNG

Chapter
Section
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:

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

PREFERRED STOCK VALUATION Ezzell Corporation issued perpetual preferred stock with a 10% annual dividend. The s...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Identify the general categories of products.

Foundations of Business (MindTap Course List)

What is the useful life of an asset?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry) 