A consumer derives 10 utilities of satisfaction from consuming 1st unit of good X and 6 utilities of satisfaction from the next unit. What is the marginal utility of the second unit?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 6 utils.
Given:
Utility from the 1st unit = 10 utils
Utility from the 2nd unit = 6 utils
Marginal utility (MU) is the change in total utility from consuming one additional unit:
Total utility from 1 unit = 10 utils
Total utility from 2 units = 10 + 6 = 16 utils
MU of the 2nd unit = 16 − 10 = 6 utils
NCERT (2026-27): “Measures of Utility … Marginal Utility: Marginal utility (MU) is the change in total utility due to consumption of one additional unit of a commodity. For example, suppose 4 bananas give us 28 units of total utility and 5 bananas give us 30 units of total utility. Clearly, consumption of the 5th banana has caused total utility to increase by 2 units (30 units minus 28 units). Therefore, marginal utility of the 5th banana is 2 units. MU5 = TU5 – TU4 = 30 – 28 = 2 In general, MUn = TUn – TUn-1, where subscript n refers to the nth unit of the commodity…” |