Question

Physician Visits/year	Total Utility	Marginal Utility
1	20	?
2	30	?
3	34	?
4	?	2
5	?	1

At 4 physician visits per year, the consumer's total utility is

a. 40

b. 36

c. 34

d. 2

e. None of the above

Answer 1

ANSWER:

Marginal utility is the change in total utility with respect to the no of visits to the physician each year.

physician visits per year	total utility	marginal utility
1	20	= 20 / 1 = 20
2	30	= (30 - 20) / (2 - 1) = 10
3	34	= (34 - 30) / (3 - 2) = 4
4	= 34 + 2 = 36	2
5	= 36 + 1 = 37	1

so the correct answer is option b that is 36.