Calculate the marginal utility of 11th Apple, if the consumption of 10 apples gives total utility of 90 and 11 apples gives 95.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 5
- Total utility after consuming 10 apples ($TU_{10}$) = 90
- Total utility after consuming 11 apples ($TU_{11}$) = 95
- Marginal utility (MU) of the 11th apple = $TU_{11}$ - $TU_{10}$
- Marginal utility = 95 - 90
- Marginal utility = 5