Question

Karen received 105 total utils from the first 4 sodas she drank. If the marginal utilities of the first, second, and fourth sodas are 35, 28, and 16 respectively, what is the marginal utility of the third soda? a. 16.b. 26.c. 27.d. 105.

Answer 1

Answer:

b. 26

Explanation:

Marginal utility refers to the utility gained by the consumption of an additional unit of a commodity. It is the satisfaction enjoyed by a consumer for the additional use of a unit of a good or service.

Given that the total marginal utilities is 105 and the  marginal utilities of the first, second, and fourth sodas are 35, 28, and 16 respectively,  the marginal utility of the third soda

= 105 - (35 + 28 + 16)

= 26