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    Total and Marginal Utility

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    Complete the following table and answer the questions below:
    Units Consumed Total Utility Marginal Utility
    0 0 .
    1 10 10
    2 . 8
    3 25
    4 30 .
    5 . 3
    6 34 .

    1. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know?
    2. "A rational consumer will purchase only 1 unit of the product represented by these data, since that amount maximizes marginal utility." Do you agree? Explain why or why not.
    3. "It is possible that a rational consumer will not purchase any units of the product represented by these data." Do you agree? Explain why or why not.

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    https://brainmass.com/economics/utility/total-and-marginal-utility-543586

    Solution Preview

    Answers:

    Units Consumed Total Utility Marginal Utility
    0 0 -
    1 10 10
    2 18 8
    3 25 7
    4 30 5
    5 33 3
    6 34 1

    Solution:

    MU = (CTU-PrevTU) / Curr_Consump-Prevconsump

    Where:

    MU =Marginal Utility
    CTU = Current Total Utility
    PrevTU= Previous Total Utility
    Curr_Consump = Current ...

    Solution Summary

    This solution computes for total and marginal utility. Some marginal utility data are left blank and solved using mathematical formula.

    $2.19

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