if the total utilities corresponding to the first five units of a good consumed are 20, 35, 45, 50, and 52…
if the total utilities corresponding to the first five units of a good consumed are 20, 35, 45, 50, and 52, respectively, what is the marginal utility of the fourth unit?\no 4\no 5\no 4.5\no 2\no 12.5
Answer
Explanation:
Step1: Recall marginal - utility formula
Marginal utility of the $n$th unit = Total utility of $n$ units - Total utility of $(n - 1)$ units.
Step2: Identify values for $n = 4$
Total utility of 4 units is 50, and total utility of 3 units is 45.
Step3: Calculate marginal utility
Marginal utility of the 4th unit = $50−45$. $50 - 45=5$
Answer:
5