The total utility from consuming three units of an item is 300 utility points and the marginal utility of the fourth unit of the item consumed is 150 utility points. The total utility from consuming four units of the item is:
A) 150 utility points.
B) 400 utility points.
C) 450 utility points.
D) 600 utility points.

Question

Quizplus · Accepted Answer

Total utility from consuming four units is the sum of the total utility from the first three units (300 utility points) and the marginal utility of the fourth unit (150 utility points), which equals 450 utility points.

The Total Utility from Consuming Three Units of an Item