The total utility from consuming 8 units of a good is 155. The marginal utility of the 8th unit is 7 and the marginal utility of the 7th unit is 11. The total utility from consuming 6 units of the good is
A) 173.
B) 144.
C) 137.
D) 130.

Question

Quizplus · Accepted Answer

We can find the total utility of the first seven units by using marginal utility as follows:
Total utility of 7th unit = Total utility – Marginal utility of 8th unit = 155 – 7 = 148
Total utility of 6th unit = Total utility of 7th unit – Marginal utility of 7th unit = 148 – 11 = 137
Therefore, the total utility from consuming 6 units of the good is 137. Option C is the correct answer.

The Total Utility from Consuming 8 Units of a Good