quantity (cups of coffee) nias total utility 0 0 1 10 2 16 3 20 4 22 5 23 the above table gives the total…

quantity (cups of coffee) nias total utility 0 0 1 10 2 16 3 20 4 22 5 23 the above table gives the total utility nia obtains from consuming various cups of coffee. the marginal utility from the third cup of coffee is 20 6.7 20 4.0

quantity (cups of coffee) nias total utility 0 0 1 10 2 16 3 20 4 22 5 23 the above table gives the total utility nia obtains from consuming various cups of coffee. the marginal utility from the third cup of coffee is 20 6.7 20 4.0

Answer

Explanation:

Step1: Recall marginal - utility formula

Marginal utility (MU) of the $n$th unit is $MU_n = TU_n - TU_{n - 1}$, where $TU_n$ is the total utility of consuming $n$ units and $TU_{n - 1}$ is the total utility of consuming $n-1$ units.

Step2: Identify values for $n = 3$

For the third cup of coffee, $n = 3$, $TU_3=20$ (total utility of 3 cups) and $TU_2 = 16$ (total utility of 2 cups).

Step3: Calculate marginal utility

$MU_3=TU_3 - TU_2=20 - 16=4$.

Answer:

4.0