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) 45.
B) 55.
C) 55/4.
D) 55/5.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Since the marginal utility of the fourth shirt is not given, we cannot determine the exact total utility of four shirts. However, we can use the concept of diminishing marginal utility to make an educated guess. Since the marginal utility of the third shirt is 5, it is likely that the marginal utility of the fourth shirt will be less than 5, meaning that the total utility of four shirts will be less than 55 units. Therefore, the best choice is B, 55.

For Jack,the Total Utility from Three Shirts Is 50 Units