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miskamm [114]
3 years ago
11

f a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars

, the marginal utility of the third candy bar is Select one: a. 25 utility units. b. 20 utility units. c. 5 utility units. d. unknown as more information is needed to determine the answer. Previous page
Business
1 answer:
IRISSAK [1]3 years ago
7 0

Answer:

correct option is c. 5 utility units

Explanation:

given data

receives 20 units = consuming 2 candy

receives 25 units = consuming 3 candy

to find out

Marginal utility

solution

we know that Marginal utility of 3rd candy bar is express as  

Marginal utility = \frac{change in total utility}{change in quantity}    .........1

put here value

Marginal utility = \frac{25 - 20}{3 - 2}

Marginal utility =  5 unit

so correct option is c. 5 utility units

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