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horrorfan [7]
4 years ago
6

What is the difference between total utility and marginal​ utility?

Business
1 answer:
Whitepunk [10]4 years ago
6 0
The main difference between total utility and marginal utility is that total utility refers to the total amount of satisfaction the consumer receives from a good. Marginal utility is the added satisfaction they receive from consuming an idiot unit of the same good. 
We all buy something and hope to feel satisfied from purchasing that good, that is essentially what total and marginal utility are measuring. This allows economists and businesses to track how satisfied consumers are from consumption of a product. 
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Answer:

$119,666

Explanation:

The benefit of remodelling can be calculated using the net present value.

The net present value is the present value of after tax cash flows minus the cost of an investment.

The net present value can be calculated using a financial calculator.

Cash flow for year 0 =  $-2.8 million

Cash flow each year from year one to year five = $820,000

I = 12.5%

NPV = $119,666

The benefit of the renovation exceeds its cost so the renovation should be carried out.

I hope my answer helps you.

8 0
4 years ago
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Answer:

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8 0
3 years ago
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