Bundle: Microeconomics, Loose-leaf Version, 10th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
10th Edition
ISBN: 9781305782570
Author: William Boyes; Michael Melvin
Publisher: Cengage Learning
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Chapter 7, Problem 1E
To determine
(a)
Graphical representation of total utility.
Expert Solution
Explanation of Solution
| No. of utils | Total Utility | |
| 1st | 300 | 300 |
| 2nd | 250 | 550 |
| 3rd | 220 | 770 |
| 4th | 160 | 930 |
| 5th | 100 | 1030 |
| 6th | 50 | 1080 |
| 7th | 20 | 1100 |
| 8th | 0 | 1100 |
| 9th | -250 | 850 |
Economics Concept Introduction
Total Utility is defined as the aggregate of total satisfaction that a consumer consumes for a specific good or service.
Marginal utility is defined as the addition to the total utility which is derived after consuming an additional unit.
To determine
(b)
Graphical representation of Marginal utility.
Expert Solution
Explanation of Solution
Economics Concept Introduction
Marginal utility is the addition to total utility when one more unit of good is consumed.
To determine
(c)
Marginal utility value at which total utility reach a maximum.
Expert Solution
Explanation of Solution
At 8TH unit, total utility is at its maximum and marginal utility is 0.
Economics Concept Introduction
Marginal utility is the addition to total utility when one more unit of good is consumed.
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Chapter 7 Solutions
Bundle: Microeconomics, Loose-leaf Version, 10th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
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