Question

21. The first Laddu yields Bheem 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three Laddu is 38 units of utility. The marginal utility of the third Laddu: (a) is 26 units of utility. (b) is 6 units of utility. (c) is 8 units of utility. (d) is 38 units of utility. (1)​

Answer 1

Answer:

  (c) 8 units of utility

Step-by-step explanation:

You want the marginal utility of the third Laddu, if the first two yield 18 and 12 units of utility, and the total utility of 3 Laddu is 38 units.

Marginal utility

The marginal utility of a Laddu is the utility added by adding a Laddu.

After the first, there are 18 units of utility. After the second, there are 18+12=30 units of utility. After the third, there are 38 units of utility.

Adding the third Laddu added 38-30 = 8 units of utility.

The marginal utility of the third Laddu is 8 units of utility, choice C.