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 utils.
B)20 utils.
C)5 utils.
D)unknown as more information is needed to determine the answer.

Question

Quizplus · Accepted Answer

Marginal utility is the additional utility gained by consuming one more unit of a good. In this case, consuming the third candy bar resulted in an increase of 5 units of utility (25 - 20), making the marginal utility of the third candy bar 5 utils.

If a Consumer Receives 20 Units of Utility from Consuming