Chapter 20: Problem 1
Using the following information, calculate total utility and marginal utility. a. Plot the total utility curve. b. Plot marginal utility directly below total utility. c. At what marginal utility value does total utility reach a maximum? \(\begin{array}{lr}\text { Number of utils for the first unit } & 300 \\ \text { Number of utils for the second unit } & 250 \\ \text { Number of utils for the third unit } & 220 \\ \text { Number of utils for the fourth unit } & 160 \\\ \text { Number of utils for the fifth unit } & 100 \\ \text { Number of utils for the sixth unit } & 50 \\ \text { Number of utils for the seventh unit } & 20 \\ \text { Number of utils for the eighth unit } & 0 \\ \text { Number of utils for the ninth unit } & -250\end{array}\)
Short Answer
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Key Concepts
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