If the total utility of 2 bags of chips is 25,the total utility of 3 bags is 33,and the total utility of 4 bags is 40 units,then the marginal utility of the 3rd and 4th bags are
A) 8 and 7, respectively.
B) 12.5 and 11, respectively.
C) 11 and 10, respectively.
D) 58 and 73, respectively.
E) 33 and 40, respectively.

Question

Quizplus · Accepted Answer

The marginal utility of the 3rd bag is the increase in total utility from consuming the 3rd bag compared to 2 bags, which is 33 - 25 = 8 units. The marginal utility of the 4th bag is the increase in total utility from consuming the 4th bag compared to 3 bags, which is 40 - 33 = 7 units.

If the Total Utility of 2 Bags of Chips Is