Answer to Question #214102 in Microeconomics for Mubasher

Question #214102

From the following total utility schedule


Qx 0 1 2 3 4 5 6 7

TUx 0 4 14 20 24 26 26 24


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.


1
Expert's answer
2021-07-06T08:20:34-0400

Solution:

a.). The marginal utility (MUx) = "\\frac{\\triangle TUx}{\\triangle Qx}"

The marginal utility schedule is as below:



 

 

b.). The total and the marginal utility schedules graph are as below:




 

 

c.). The law of diminishing marginal utility begins to operate at Qx = 3. This is where it starts decreasing.

 

d.). The saturation point is at Qx = 6. This is the point where MUx = 0 and Tux starts to decrease.


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Comments

Aungwa Michael fanen
10.04.24, 23:23

Thank you very much for improving knowledge through the answers

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