If Maria gets 80 utils from consuming five cookies, 100 utils from consuming six cookies, and 130 utils from consuming seven cookies, then Maria's marginal utility from the sixth cookie is: O 20 utils. O 100 utils. O 80 utils. O 40 utils.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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17

**Understanding Marginal Utility: A Practical Example**

If Maria gains 80 utils from consuming five cookies, 100 utils from consuming six cookies, and 130 utils from consuming seven cookies, what is Maria's marginal utility from the sixth cookie?

**Options:**
- 20 utils
- 100 utils
- 80 utils
- 40 utils

**Explanation:**

Marginal utility refers to the additional satisfaction a consumer gains from consuming one more unit of a good or service. To calculate this, you subtract the total utility after consuming a given number of goods from the total utility after consuming one more unit.

In this case:
- Total utility for 5 cookies = 80 utils
- Total utility for 6 cookies = 100 utils
- Marginal utility from the sixth cookie = 100 utils - 80 utils = 20 utils

Thus, the correct answer is **20 utils**.
Transcribed Image Text:**Understanding Marginal Utility: A Practical Example** If Maria gains 80 utils from consuming five cookies, 100 utils from consuming six cookies, and 130 utils from consuming seven cookies, what is Maria's marginal utility from the sixth cookie? **Options:** - 20 utils - 100 utils - 80 utils - 40 utils **Explanation:** Marginal utility refers to the additional satisfaction a consumer gains from consuming one more unit of a good or service. To calculate this, you subtract the total utility after consuming a given number of goods from the total utility after consuming one more unit. In this case: - Total utility for 5 cookies = 80 utils - Total utility for 6 cookies = 100 utils - Marginal utility from the sixth cookie = 100 utils - 80 utils = 20 utils Thus, the correct answer is **20 utils**.
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