(Figure: Utility Table A) Price = $5
In the table, what is the marginal utility of the first unit?
$\begin{array}{|l|l|l|}
\hline \text { Q }&\text { TU } & \text { MU } \
\hline 1 & 108 & ? \
\hline 2 & 180 & ? \
\hline 3 & 228 & 48 \
\hline 4 & 264 & 36 \
\hline 5 & 288 & 24 \
\hline
\end{array}$
A) 21.6
B) 72
C) 108
D) 216

Question

(Figure: Utility Table A) Price = $5
In the table, what is the marginal utility of the first unit?
 $\begin{array}{|l|l|l|}
\hline \text { Q }&\text { TU } & \text { MU } \
\hline 1 & 108 & ? \
\hline 2 & 180 & ? \
\hline 3 & 228 & 48 \
\hline 4 & 264 & 36 \
\hline 5 & 288 & 24 \
\hline
\end{array}$
A) 21.6
B) 72
C) 108
D) 216

Quizplus · Accepted Answer

The marginal utility (MU) of the first unit is the change in total utility (TU) from consuming the first unit, which is simply the total utility of the first unit itself, 108, since there is no consumption prior to the first unit.

(Figure: Utility Table A) Price = $5 in the Table

(Figure: Utility Table A) Price = $5
in the Table