Homework Answers
Answer
MU (n) =TU (n)-TU (n-1)
MU(n)=marginal utility of n th unit
TU(n)=total utility of n units
TU(n-1)= total utility of n-1 units
MU(1)=100-0=100
MU(2)=190-100=90
MU(3)=270-190=80
MU(4)=340-270=70
MU(5)=400-340=60
MU(6)=450-400=50
The MU is greatest is from the first unit
Option 2
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