Use the following to answer question(s):
-(Exhibit: Utility) The marginal utility for the second unit is:
A) 35.
B) 15.
C) 10.
D) 5.

Question

Use the following to answer question(s): 
-(Exhibit: Utility) The marginal utility for the second unit is:
A) 35. 
B) 15. 
C) 10. 
D) 5.

Quizplus · Accepted Answer

The highest point of total utility is reached at the third unit. However, the marginal utility of the third unit is only 5, while the marginal utility of the second unit is 15. Therefore, it is more efficient to stop consuming after the second unit, as the marginal utility decreases significantly after that point.

Use the Following to Answer Question(s)