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Q. 3

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Economics Today
Found in: Page 452

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Short Answer

Where possible, complete the missing cells in the table below.

The total utility of the first bag of french fries is 10 (0 + 10 = 10), the second bag of french fries is 18 (10 + 8 = 18), and the third bag of french fries is role="math" localid="1651853961635" 20 (18 + 2 = 20) . The marginal utility of th (21-21 = 0) e fourth french fries is 1 (21-20 = 1) and the bag of the fifth french fries is.

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Step by Step Solution

Step 1- introduction

Total utility is the total utility that a consumer receives after consuming all goods. Marginal utility is the utility that a consumer receives after consuming additional good.

In the table above, you need to calculate the total and marginal utility of cheeseburgers and french fries. Marginal utility is equal to the change in total utility divided by the change in quantity.

Step 2- Explanation

The total utility of the third cheeseburger is 48 (36 + 12 = 48), the fourth cheeseburger is (48 + 8 = 56), and the fifth cheeseburger is (56 + 4 = 60). The marginal utility of the first cheeseburger is role="math" localid="1651853457906" (20-0 = 20) and the marginal utility of the second cheeseburger is (36-20 = 16) .

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