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