For Jack, the total utility from three shirts is 50 units and the marginal utility of one more shirt is 5. The total utility of four shirts is
A) 55/5.
B) 55.
C) 55/4.
D) 45.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

If the total utility of three shirts is 50 and the marginal utility of one more shirt is 5, then we can calculate the total utility of four shirts as follows:
Total utility of four shirts = Total utility of three shirts + Marginal utility of the fourth shirt
Total utility of four shirts = 50 + 5
Total utility of four shirts = 55. 
Therefore, the answer is B.

For Jack, the Total Utility from Three Shirts Is 50