T or F #7 QUICK
1 answer:
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Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data about the number of passengers and total utilities. However, I have found a similar question on the internet and will using its data to solve for this problem. Besides that, I have attached the data in the attachment that I am using in this question.
Solution:
First of all, we are asked to calculate the marginal utility. In order to do that, we need to know the formula for Marginal Utility.
Formula:
Marginal Utility = TU2 - TU1/C2-C1
Where,
MU = Marginal Utility
TU = Total Utility
C = Number of units
So, according to the data provided.
For 0 number of passengers:
MU(0) = 0
For 2 number of passengers:
MU(2) = (100 - 0)/(2-0) = 100/2 = 50
Similarly,
For 4 number of passengers:
MU(4)=(225-100)/(4-2)= (125/2) = 62.5
For 6 number of passengers:
MU(6)=(355-225)/(6-4) = (130/2) = 65
For 8 number of passengers:
MU(8)=(400-355)/(8-6) = (45/2) = 22.5
For 10 number of passengers:
MU(10)=(425-400)/(10-8)= (25/2) = 12.5
