TABLE 6-5

-Refer to Table 6-5. The table shows Bennett's total utility from each bag of potato chips and can of soda pop that he consumes. If Bennett increases his consumption of potato chips from three bags to four bags, what is his marginal utility from the fourth bag?
A) 7
B) 8
C) 48
D) 55

Question

TABLE 6-5
 
-Refer to Table 6-5. The table shows Bennett's total utility from each bag of potato chips and can of soda pop that he consumes. If Bennett increases his consumption of potato chips from three bags to four bags, what is his marginal utility from the fourth bag?
A) 7 
B) 8 
C) 48 
D) 55

Quizplus · Accepted Answer

To find out the marginal utility of the fourth bag, we need to calculate the change in total utility from consuming three bags to consuming four bags. 
Bennett's total utility from three bags of potato chips is 38. His total utility from four bags of potato chips is 46. 
Therefore, his marginal utility from the fourth bag of potato chips is 46 - 38 = 8. 
Since the marginal utility from the fourth bag is positive and the marginal utility from the fifth bag is negative, Bennett should stop consuming potato chips after the fourth bag if he wishes to maximize his total utility.

TABLE 6-5 -Refer to Table 6-5. the Table Shows Bennett's Total Utility