Question 8
MediumOriginal questionThe table shows a consumer's total utility from ice cream.
| Units of ice cream | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Total utility (utils) | 10 | 18 | 24 | 28 | 30 | 30 | 28 |
At which unit does marginal utility become zero, and what is total utility there?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
MU₆ = TU₆ − TU₅ = 30 − 30 = 0: the 6th unit adds nothing.
TU is at its maximum where MU becomes zero; after that MU is negative and TU falls to 28.
Worth noting
TU is already 30 at 5 units, but the 5th unit's MU is 2, not 0.
- Concept
- Maximum TU and zero MU
- Typical timeTypical
- 70 s
- Your timeYours
- —
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