Table 10-7

Table 10-7 shows Antonio's utility from beer and pizza.
-Refer to Table 10-7.What is Antonio's marginal utility from consuming the fifth beer?
A)4 utils
B)13.6 utils
C)69 utils
D)134 utils

Question

Table 10-7
  
Table 10-7 shows Antonio's utility from beer and pizza.
-Refer to Table 10-7.What is Antonio's marginal utility from consuming the fifth beer?
A)4 utils 
B)13.6 utils 
C)69 utils 
D)134 utils

Quizplus · Accepted Answer

According to the table, Antonio's marginal utility from the fifth beer is 4 utils. Therefore, it would not be rational for him to consume any more beer beyond this point as the marginal utility would be negative, indicating a decrease in overall satisfaction. He should instead allocate his spending towards other goods that provide higher marginal utility. The best choice, in this case, would be to stop consuming beer after the fifth one.

Table 10-7 Table 10-7 Shows Antonio's Utility from Beer and Pizza