-The table above gives Cathy's total utility from Mt. Dew. If the price of a Mt. Dew is $2, Cathy's marginal utility per dollar from the 3rd Mt. Dew is ________ units per dollar
A) 20
B) 10
C) 32.5
D) 40

Question

-The table above gives Cathy's total utility from Mt. Dew. If the price of a Mt. Dew is $2, Cathy's marginal utility per dollar from the 3rd Mt. Dew is ________ units per dollar
A) 20 
B) 10 
C) 32.5 
D) 40

Quizplus · Accepted Answer

Marginal utility is the change in total utility from consuming an additional unit. To find the marginal utility per dollar for the 3rd Mt. Dew, calculate the change in total utility from the 2nd to the 3rd Mt. Dew and divide by the price. If the total utility from the 2nd is U2 and from the 3rd is U3, then marginal utility = U3 - U2. Divide this by the price ($2) to get the marginal utility per dollar.

-The Table Above Gives Cathy's Total Utility from Mt