A) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit c
1 answer:
The Marginal Utility per Dollar for the fourth unit consumed is 2.50 utils.
The Marginal Utility per Dollar for the second unit consumed is 9 utils.
Utility is the total satisfaction a consumer derives from consuming a good or service.
Marginal utility is the change in total utility when a consumer increases the unit consumer by one.
Marginal utility = change in total utility / change in price
<u><em>Marginal Utility per Dollar for the fourth unit consumed</em></u>
Marginal utility when the fourth unit is consumed = (64 - 54) / (4 - 3)
10 / 1 = 10.
Marginal utility per dollar = 10 / $4 = 2.50 utils
<u><em>Marginal Utility per Dollar for the second unit consumed </em></u>
Marginal utility of the second unit = (40 - 22) / (2 - 1) =
18 / 1 = 18
Marginal utility per dollar = 18 / $2 = 9 utils
Please find attached the table of the utility function. To learn more, please check: brainly.com/question/14850856?referrer=searchResults
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