If Sarah gets 40 units of utility from her first piece of toast for breakfast and a total of 70 units from two pieces of toast,then the marginal utility of the first piece is ________ units and the marginal utility of the second piece is ________ units.
A) 40; 70
B) 40; 110
C) 40; 30
D) 40; 35
E) 70; 40

Question

Quizplus · Accepted Answer

The marginal utility of the first piece is the utility Sarah gained from the second piece. Therefore, marginal utility of the first piece = 70 - 40 = 30 units.

The marginal utility of the second piece is the utility Sarah gained from the second piece minus the utility she gained from the first piece. Therefore, marginal utility of the second piece = 70 - 40 = 30 units.

Therefore, the correct answer is C, 40 and 30 units for the first and second piece respectively.

If Sarah Gets 40 Units of Utility from Her First