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Alja [10]
3 years ago
8

The marginal utility for the third unit of X is 63 utils, and the marginal utility for the fourth unit of X is 56 utils. Assume

that, in this case, utility can only take on whole number, integer, values measured in utils.
If the law of diminishing marginal utility holds, the minimum total utility of consuming four units of X is_______ utils.
Business
1 answer:
borishaifa [10]3 years ago
8 0

Answer:

248 UTILS

Explanation:

Total Utility is the total satisfaction from consumption of all units of a good.

Marginal Utility is the additional satisfaction from consuming an additional unit of a good.

TU = ΣMU ; MU = TUn - TUn-1

Law of Diminishing Marginal Utility states : A good's units of consumption increase makes it additional satisfaction i.e MU to rise lesser in the successive unit than in the preceding one. Eg - A thirsty person will get higher satisfaction from the 1st glass of water than the 2nd glass.

If the case gIven follows Law of DMU : (Given- [email protected] unit < [email protected] unit) i.e (56<63) ; Following must would have been the case :

[email protected] unit > [email protected] unit > [email protected] unit - First two MUs would at least be 65, 64 (least possible whole no. integer values > 63).

So , Minimum TU (1..4) = ΣMU = 65 + 64 + 63 + 56 = 248 utils

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3 years ago
If it costs $75,000 to put on an event and total revenue is $135,000, what is the profit as a percentage of revenue?
Nuetrik [128]

Answer:

44.44%

Explanation:

Profit is obtained by subtracting cost from revenue.

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2 years ago
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Answer:

1) many buyers and sellers, (2) free entry and exit

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A pure competition is characterised by many buyers and sellers of homogenous goods and services. Buyers and sellers have perfect information. There are no barriers to entry or exit of firms in the industry. Market price is set by the market forces. Firms make zero economic profit in the long run.

I hope my answer helps you

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a. address problems with sellers.

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