Question 24
HardOriginal questionA 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?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
TU₆ = TU₅ + MU₆ = 40 + (−3) = 37 utils.
A negative MU pulls total utility down.
- Concept
- Adding a negative MU
- Typical timeTypical
- 100 s
- Your timeYours
- —
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