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15 January, 18:54

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. 7 B. 6 C. 2 D. 6.67

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  1. 15 January, 19:14
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    Answer: The marginal utility is 2

    Explanation:

    Utility is the satisfaction derived from the consumption of a particular commodity. Total utility is the total satisfaction derived from the consumption of a particular commodity. Marginal utility is the extra satisfaction that a consumer gets from consuming a product. Utility is measured in utils.

    Marginal utility increases with an extra consumption of a good at first but later it begins to reduce as the extra good consumed doesn't really have give the consumer enough satisfaction anymore.

    Regarding the question, eating 5 hotdogs gives 40 utils and eating 6 hotdogs gives 42 utils.

    The marginal utility is the extra utils which will be 42-40 which gives 2 utils.
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Home » Business » 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. 7 B. 6 C. 2 D. 6.67
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