If total utility from consuming two cups of coffee is 20 utils, and if the total utility from consuming three cups of coffee is 25 utils, then which of the following is the marginal utility of the third cup of coffee?
A) 0.
B) 5.
C) 10.
D) 20.
E) 25.

Question

If total utility from consuming two cups of coffee is 20 utils, and if the total utility from consuming three cups of coffee is 25 utils, then which of the following is the marginal utility of the third cup of coffee?​
A) ​0.
B) 5.​
C) ​10.
D) ​20.
E) ​25.

Quizplus · Accepted Answer

The marginal utility of the third cup of coffee can be calculated by subtracting the total utility of two cups of coffee from the total utility of three cups of coffee: 
Marginal utility = Total utility of 3 cups – Total utility of 2 cups 
Marginal utility = 25 – 20 
Marginal utility = 5

Therefore, the answer is B (5).

As for the best choice, it depends on the context of the situation. If the person is trying to maximize total utility, then they should consume three cups of coffee. However, if the person is trying to maximize their overall well-being and health, they may want to consider the negative effects of consuming too much caffeine and limit their coffee intake.

If Total Utility from Consuming Two Cups of Coffee Is