Suppose that Dillon derives 40 utils of total utility from eating 5 hotdogs and 42 utils of total utility from eating 6 hotdogs. What is Dillon's marginal utility from eating the 6th hotdog?
A) 2
B) 6
C) 7
D) 6.67

Question

Quizplus · Accepted Answer

Marginal utility is the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. In this case, Dillon's total utility increases from 40 utils to 42 utils as he goes from consuming 5 hotdogs to 6 hotdogs. Therefore, the marginal utility of consuming the 6th hotdog is the change in total utility, which is 42 utils - 40 utils = 2 utils.

Suppose That Dillon Derives 40 Utils of Total Utility from Eating