Answer to Question #189818 in Microeconomics for Pat Beckham

Question

Qx 0 1 2 3 4 5 6 7

TUx 0 4 14 20 24 26 26 224

a. Derive the marginal utility schedule.

b. Plot the total and the marginal utility schedules.

c. Determine where the law of diminishing marginal utility begins to operate.

d. Find the saturation point.

Answer 1

a)

b)

c) q=2

d) q=6