Suppose that the total utility from consuming one unit of good Z is 80 utils, the total utility from consuming two units of good Z is 125 utils, and the total utility from consuming three units of good Z is 160 utils. The marginal utility received from consuming the third unit of good Z is
A)365 utils.
B)35 utils.
C)45 utils.
D)50 utils.

Question

Quizplus · Accepted Answer

The marginal utility of consuming the third unit of good Z is the additional utility gained from consuming the third unit compared to the second unit. This is calculated as the total utility from three units (160 utils) minus the total utility from two units (125 utils), which equals 35 utils.

Suppose That the Total Utility from Consuming One Unit of Good