Question

At an amusement park, Sue achieves an enjoyment value of 10 on her first roller coaster ride and an enjoyment value of 6 on her second ride. Her marginal benefit from her second ride is:

Answer 1

Answer:

The answer is 6

Explanation:

In her first roller coaster she gets a benefit of 10, Then in her second roller coaster she gets a benefit of 6. Thus, her total benefit is 16. Her marginal benefit of the second roller coaster is the total benefit after the second (16) minus the total benefit after the first (10).

Observation:

The statement is not clear about the second roller coaster, in the sense that is not clear if the second gives her a total utility of 6 (reducing the 10 of the first inf 4 units) or this 6 is a marginal utility/benefit. By the way you put it, I assume it is a marginal benefit of 6. If it is not, the correct answer should be -4, and Sue get a negative marginal benefit from her second roller coaster.