If two units of a good provide 7 utils and the marginal utility of the third unit of the good is 2 utils, what is the total utility from consuming three units of the good?
A) 3 utils
B) 7 utils
C) 9 utils
D) 10 utils

Question

Quizplus · Accepted Answer

The total utility from consuming two units of the good is 7 utils. The marginal utility of the third unit is 2 utils, which means that consuming the third unit adds 2 utils of utility to the total. Therefore, the total utility from consuming three units of the good is 7 + 2 = 9 utils. 
The best choice would be to consume three units of the good, as this maximizes total utility.

If Two Units of a Good Provide 7 Utils and the Marginal