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6 August, 19:44

The marginal utilities associated with the first 5 units of consumption of good Y are 15, 15, 10, 7, and 3, respectively. What is the total utility associated with those 5 units?

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  1. 6 August, 22:44
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    Total utility is 50

    Explanation:

    Mathematically;

    TU = U1+MU2+MU3+MU4+MU5

    TU = Total utility

    U1 = utility of 1st product of good Y

    MU2 = Marginal utility of 2nd product of good Y ...

    MU5 = Marginal utility of 5th product of good Y

    Solution:

    TUy = 15+15+10+7+3

    TUy = 50.
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