If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars, the marginal utility of the third candy bar is
A)25 utility units.
B)20 utility units.
C)5 utility units.
D)unknown as more information is needed to determine the answer.

Question

Quizplus · Accepted Answer

Marginal utility is the additional utility a consumer gains from consuming one more unit of a good. To calculate marginal utility, we need to find the difference between the total utility of consuming two candy bars and the total utility of consuming three candy bars, which is:

25 (total utility from 3 candy bars) - 20 (total utility from 2 candy bars) = 5

Therefore, the marginal utility of the third candy bar is 5 utility units.

If a Consumer Receives 20 Units of Utility from Consuming