Exhibit 6-1
-Consider Exhibit 6-1 which shows the total utility derived from various numbers of glasses of milk consumed in a day. The marginal utility of the third glass of milk is

Question

Exhibit 6-1 
-Consider Exhibit 6-1 which shows the total utility derived from various numbers of glasses of milk consumed in a day. The marginal utility of the third glass of milk is

Quizplus · Accepted Answer

Marginal utility is the additional utility gained from consuming one more unit of a good. In this case, the marginal utility of the third glass of milk can be calculated by finding the difference between the total utility of consuming three glasses of milk (19) and the total utility of consuming two glasses of milk (11), which is 8. Therefore, the answer is C) 8 units of utility.

As for the best choice, it depends on the individual's preferences and budget constraints. If the price of a glass of milk is greater than or equal to the marginal utility of the last glass consumed, it is not worth buying another glass. In this case, the individual should stop consuming milk after the third glass since the marginal utility of the fourth glass (-1) is negative. However, if the price is less than the marginal utility, the individual should continue consuming milk until the marginal utility equals the price.

Exhibit 6-1 -Consider Exhibit 6-1 Which Shows the Total Utility Derived from Utility