Answer to Question #201919 in Microeconomics for Rida Awwal

Question

The TU of first five breads consumed is 4, 10, 15, 18 and 16 one after

the other which of the following is true?

Answer 1

Utility is maximized at the 4th bread consumed, Total utility (TU) is 18; marginal utility decreases from 3rd, 4th and 5th bread by the following (MU) 5, 3, and 2 respectively; this is in line with the law of diminishing marginal utility.

NOTE: The is illustrated in the table below:

Units of bread Total Utility(TU) Marginal Utility(MU)

1 4 4

2 10 6

3 15 5

4 18 3

5 16 2