The following table shows a hypothetical total utility schedule for a consumer o

Question

The following table shows a hypothetical total utility schedule for a consumer of chocolate candy bars

. Number consumed /Total Utility

0/ 0

1/ 9

2 /19

3/ 27

4/ 35

5/ 42

6 /42

7 /40

This consumer beings to experience diminishing marginal utility when he consumes the a. First candy bar b. Second candy bar c. Third candy bar d. Fourth candy bar

Marginal utility becomes negative with the consumption of the a. Fourth candy bar b. Fifth candy bar c. Sixth candy bar d. Seventh candy bar

Based on the data, you can conclude that the a. Marginal utility of the fourth unit is 6 b. Marginal utility of the second unit is 27 c. Total utility of 5 units is 42 d. Total utility of 3 units is 55

Explanation / Answer

Units TU MU 0 0 0 1 9 9 2 19 10 3 27 8 4 35 8 5 42 7 6 42 0 7 40 -2 Req 1: Answer is C. Third candy bar. Req2: Answer is d. Seventh candy bar. Req 3: Answer is c. Total utility of 5 units is 42.

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