Refer to the figure below. The total utility of consuming two dinners out per week is: $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Number of Dinners } \
\text { Out Per Week }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Utility }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { Utility }
\end{array} \
\hline 1 & 100 & \
\hline 2 & & 75 \
\hline 3 & 235 & \
\hline 4 & 250 & \
\hline
\end{array}$$
A)less than 100.
B)75.
C)175.
D)160.

Question

Refer to the figure below. The total utility of consuming two dinners out per week is: $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of Dinners } \
\text { Out Per Week }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Utility }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Utility }
\end{array} \
\hline 1 & 100 & \
\hline 2 & & 75 \
\hline 3 & 235 & \
\hline 4 & 250 & \
\hline
\end{array}$$
A)less than 100.
B)75.
C)175.
D)160.

Quizplus · Accepted Answer

The marginal utility of the first dinner out is the additional utility obtained from consuming one more dinner out, which we do not know. The marginal utility of the second dinner out is the decrease in utility when going from three dinners out to four dinners out, which is 250 - 235 = 15. This means that the total utility of two dinners out is the sum of the total utility of the first two dinners out, which is 100 + 75 = 175. Therefore, the best choice is to consume two dinners out per week, which gives a total utility of 175.

Refer to the Figure Below A)less Than 100