The total utility from consuming three units of a good is equal to:
A) the total utility from consuming two units plus the marginal utility from consuming the third unit.
B) the marginal utility from consuming the first unit, plus the marginal utility from consuming the second unit, plus the marginal utility from consuming the third unit.
C) both of the above.
D) none of the above.

Question

Quizplus · Accepted Answer

Both statements A and B accurately describe how to calculate the total utility from consuming three units of a good. Statement A explains it as the sum of the total utility from two units plus the marginal utility of the third unit, while statement B breaks it down as the sum of the marginal utilities of each individual unit consumed. Both approaches ultimately yield the same total utility.

The Total Utility from Consuming Three Units of a Good