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Utility & Consumer's Equilibrium · Question 24 of 73

Question 24

HardOriginal question

A consumer's total utility from 5 units of a good is 40 utils, and the 6th unit has a marginal utility of −3 utils. What is the total utility from 6 units?

Options for question 24

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. TU₆ = TU₅ + MU₆ = 40 + (−3) = 37 utils.

  2. A negative MU pulls total utility down.

Concept
Adding a negative MU
Typical time
100 s
Your time
—
The rule this testsTotal and marginal utility
Practise this chapter →

Ten questions from Utility & Consumer's Equilibrium, at your own pace.

Practise this chapter →

Ten questions from Utility & Consumer's Equilibrium, at your own pace.