Question

Marginal Utility Slices of Pizza Total U tility 50 2 90 120 130 137 120 5) In the above table, what is the marginal utility of the fourth slice of pizza consumed? A) 32.5 B) 130 C) 10 D) 120 2 0

Answer 1

(5) (C)

Marginal utility = Change in total utility = Change in quantity = (130 - 120) / (4 - 3) = 10/1 = 10

(6) (D)

Utility is maximized at point of tangency between indifference curve and budget line.

(7) (C)

The farther an indifference curve from the origin, the higher the total utility.

(8) (D)

Points lying on same indifference curve has same total utility.

(9) (B)

Points lying on same budget line will cost the same.