Question

(economy) if elias is willing to pay $50 for one pair of jeans but will only pay $90 for two pairs, then the value of his marginal utility for the 2nd pair of jeans is:

Answer 1

Answer: $40

Explanation:

Marginal utility is defined as the extra satisfaction that a consumer gets when he or she consumes a particular product after buying an additional unit.

In this case, the the value of his marginal utility for the 2nd pair of jeans will be:

= $90 - $50

= $40