If total utility from consuming two cups of coffee is 20 utils, and if the total utility from consuming three cups of coffee is 25 utils, then which of the following is the marginal utility of the third cup of coffee?
A) 0.
B) 5.
C) 20.
D) 25.

Question

Quizplus · Accepted Answer

Marginal utility is the additional utility obtained from consuming one more unit of a good. In this case, the total utility from two cups is 20 and the total utility from three cups is 25. Therefore, the marginal utility of the third cup is 5 utils (25-20=5). Choice B is the correct answer.

If Total Utility from Consuming Two Cups of Coffee Is