Assume that the total utilities corresponding to the first five units of a product consumed are 10, 15, 19, 22, and 24, respectively.The marginal utility of the third unit is:
A) 19.
B) 15.
C) 4.
D) 3.

Question

Quizplus · Accepted Answer

The marginal utility is the change in total utility resulting from consuming an additional unit of a product. Therefore, to calculate the marginal utility of the third unit, we need to find the difference between the total utility of the third and the total utility of the second unit.

Marginal Utility of the 3rd unit = Total Utility of 3rd unit - Total Utility of 2nd unit
Marginal Utility of the 3rd unit = 19 - 15
Marginal Utility of the 3rd unit = 4

Hence, the answer is C) 4.

Assume That the Total Utilities Corresponding to the First Five