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Chapter 20: Q.10 (page 452)

Draw a marginal utility curve corresponding to the total utility curve depicted in Problem 20-9.

Short Answer

Expert verified

a marginal utility curve corresponding to the total utility curve has been drawn.

Step by step solution

01

Given Information

Marginal utility is the additional fulfilment a shopper gets from having another unit of a decent or administration. The idea of marginal utility is utilized by financial analysts to decide the amount of a thing buyers will buy. The law of decreasing marginal utility is frequently used to legitimize moderate charges.

02

Explanation

We know,

Marginal utility is calculated by

Marginal Utility=Change in No, of Units ConsumedChange in Total Utility=∆T∆Q

We get the table,

Drawing the graph from the values we have,

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Most popular questions from this chapter

Discuss why bounded rationality may prevent reaching a true consumer optimum.

Illustrate Sue's new budget constraint and indifference curve in a diagram from the data in Problem F-3. Illustrate also the utility-maximizing combination of goods.

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