Answer to Question #190726 in Microeconomics for saad

Question

1.     From the TUy schedule in Table below, (a) derive the MUy schedule, and (b) plot the TUy and the MUy schedules and indicate the saturation point

Answer 1

table must be

as it is not given

Qy 0 1 2 3 4 5 6 7

TUy 0 6 16 22 26 29 29 27

a)

$MUy=\frac{\Delta TUy}{\Delta Qy}$ .

b) the total utility curve is upward-sloping curve

and the marginal utility increases first till Qy = 2

and then decreases and becomes negative at Qy =7