Total Utility (TU) and Marginal Utility (MU)Total Utility (TU)Consumption Quantity (C)Marginal Utility (MU)XXX1527336442476.5154856(a) Fill up the column of Marginal Utility (MU) by using the following formula:TU, – TUMUC- C;(b) Using Excel to calculate Marginal Utility (MU) to double check your answer in part (a):(c) Using Excel to graph the Total Utility (TU) and Marginal Utility (MU) curves.

Answer: (a). The formula of marginal utility: MUi, j=TUj-TUiCj-Ci Consumption Quantity (C) Total…

Answered: tility (TU) and Marginal Utility (MU)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Total Utility (TU) and Marginal Utility (MU)
Total Utility (TU)
Consumption Quantity (C)
Marginal Utility (MU)
XXX
15
27
3
36
4
42
47
6.
51
54
8
56
(a) Fill up the column of Marginal Utility (MU) by using the following formula:
TU, – TU
MU
C- C;
(b) Using Excel to calculate Marginal Utility (MU) to double check your answer in part (a):
(c) Using Excel to graph the Total Utility (TU) and Marginal Utility (MU) curves.

Expert Solution

Step 1

Answer:

(a).

The formula of marginal utility:

$M U_{i, j} = \frac{T U_{j} - T U_{i}}{C_{j} - C_{i}}$

Consumption Quantity (C)	Total Utility (TU)	Marginal Utility (MU)
0	0	xxx
1	15	$\frac{15 - 0}{1 - 0} = \frac{15}{1} = 15$
2	27	$\frac{27 - 15}{2 - 1} = \frac{12}{1} = 12$
3	36	$\frac{36 - 27}{3 - 2} = \frac{9}{1} = 9$
4	42	$\frac{42 - 36}{4 - 3} = \frac{6}{1} = 6$
5	47	$\frac{47 - 42}{5 - 4} = \frac{5}{1} = 5$
6	51	$\frac{51 - 47}{6 - 5} = \frac{4}{1} = 4$
7	54	$\frac{54 - 51}{7 - 6} = \frac{3}{1} = 3$
8	56	$\frac{56 - 54}{8 - 7} = \frac{2}{1} = 2$

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