(Figure: Utility Table) Using the information in the table above, what is the marginal utility for the first unit?
$\begin{array}{|l|l|l|}
\hline \mathbf{Q} & \mathrm{TU} & \mathrm{MU} \
\hline 0 & 0 & 0 \
\hline 1 & 12 & b \
\hline 2 & 20 & c \
\hline 3 & d & 2 \
\hline 4 & e & 1 \
\hline
\end{array}$
A) 0
B) 12
C) 20
D) 30

Question

(Figure: Utility Table) Using the information in the table above, what is the marginal utility for the first unit?
 $\begin{array}{|l|l|l|}
\hline \mathbf{Q} & \mathrm{TU} & \mathrm{MU} \
\hline 0 & 0 & 0 \
\hline 1 & 12 & b \
\hline 2 & 20 & c \
\hline 3 & d & 2 \
\hline 4 & e & 1 \
\hline
\end{array}$
A) 0
B) 12
C) 20
D) 30

Quizplus · Accepted Answer

Marginal utility (MU) for the first unit is the change in total utility (TU) from consuming that unit. Since TU goes from 0 to 12 when the first unit is consumed, the MU for the first unit is 12.

(Figure: Utility Table) Using the Information in the Table Above