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 utilis.
Marginal Utility (MU) is the additional satisfaction a consumer gets from consuming one more unit of a good.
In this question:
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Total utility from 1st unit = 10 utils
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Total utility after consuming 2 units = 10 + 6 = 16 utils
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So, Marginal Utility of the second unit = 16 – 10 = 6 utils
But since the question already states that the second unit gives 6 utils of satisfaction, that is directly the Marginal Utility of the second unit.