Utility and Marginal Utility Exercise 1 (Algo) The table below represents how Ma

Question

Utility and Marginal Utility Exercise 1 (Algo) The table below represents how Marco feels about chocolate candy bars a. Fill in the missing values for total utility and marginal utility. Instructions: Enter your answers as a whole number. Chocolate Candy Bars and Marco's Utility Chocolate Candy Total Utility Marginal Utility Bars (utils) (utils) 28 20 63 81 6 2 Suppose Marco currently has two candy bars. You tell Marco you will give him either a soda, which gives him 24 utils of happiness, or two additional candy bars. b. Which is he likely to prefer? (Click to select) Two extra candy bars A soda

Explanation / Answer

Since Macro has two choclate candy bars, so total utility from this is 48. If he gets two additional choclate candy bars, then her total utility becomes 74. Instead if he gets soda then his total utility becomes 48+24=72. So he prefers two extra candy bars.

Quantity Total Utility Marginal Utility 0 0 0 1 28 28-0=28 2 28+20=48 20 3 63 63-48=15 4 81-7=74 74-63=11 5 81 7 6 81+2=83 2

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