Question

The total utilities of the first 5 units of good x are 10, 19, 26, 33, and 40 utils, respectively. in other words, the total utility of 1 unit is 10 utils, the total utility of 2 units is 19 util, and so on. what is the marginal utility of the third unit

Answer 1

7

Marginal utility is the additional utility for each additional unit. Moving from the 2nd to 3rd units, utility increases from 19 to 26 so the marginal utility of unit 3 is 26-19 = 7