A student athlete loves cookies. He receives 200 utils for the first cookie, an additional 160 for the second, an additional 120 for the third, another 80 for the fourth, and another 40 for the fifth. The marginal utility of the fourth cookie is ________ and the total utility of consuming four cookies is ________.

Question

Quizplus · Accepted Answer

The marginal utility formula is the change in total utility divided by the change in quantity consumed.

Marginal Utility of the fourth cookie = (Total utility of the fourth cookie - Total utility of the third cookie) / Quantity change = (80 -120) / 1 = -40.

The total utility of consuming four cookies is 200 + 160 + 120 + 80 = 560.

Therefore, the best choice is C.

A Student Athlete Loves Cookies