Economics: Marginal Utility Generally, the more you have of something, the less valuable...

Economics: Marginal Utility Generally, the more you have of something, the less valuable each additional unit becomes. For example, a dollar is less valuable to a millionaire than to a beggar. Economists define a person’s “utility function” U(x) for a product as the “perceived value” ofhaving x units of that product. The derivative of U(x) is called the marginal utility function, MU Suppose that a person’s utility function for money is given by the function below. That is, U(x) is the utility (perceived value) of x dollars.

a. Find the marginal utility function MU(x).

b. Find MU(1), the marginal utility of the first dollar.

c. Find MU(1,000,000), the marginal utility of the millionth dollar.

U(x) = 100√x

U(x) = 12? x