Answered: Utility is a type of function that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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10. Utility is a type of function that occurs in economics. When a consumer receives x unils of a certain product, a certain amount of pleasure, or utility U, is derived The graph represents a typical utility function.

a) Find the average rate of change of U as x changes from 0 to 1 , from 1 to 2 , from 2 to 3 , from 3 to 4

b) Why do the average rates of change decrease as x increases?

a) The average rate of change of U as x changes from 0 to 1 is (Type an integer or a decimal.)

Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived The graph represents a typical utility function.
a) Find the average rate of change of U as x changes from 0 to 1, from 1 to 2, from 2 to 3, from 3 to 4
b) Why do the average rates of change decrease as x increases?
a) The average rate of change of U as x changes from 0 to 1 is ☐
(Type an integer or a decimal.)
AU
200
(4,162)
150-
(3,140)
(2,110)
100
(1,70)
50-
Utility (pleasure units)
2
3
Number of units of product

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