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Suppose alice receives 200 utils from consuming one hamburger and 80 utils from consuming a second hamburger. what is the marginal utility of the second hamburger?
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Suppose alice receives 200 utils from consuming one hamburger and 80 utils from consuming a second hamburger. what is the marginal utility of the second hamburger?

User Noddy
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2 Answers

2 votes

Divide the difference in total utility over the difference in units

In this case, consuming one more hamburger added 80 utils, which is the marginal utility added.

User Yanigisawa
by
4.4k points
6 votes

Answer:

-120

Step-by-step explanation:

Since the utility is decreasing our marginal utility will be negative.

Total Utility

1st hamburger = 200

2nd hamburger = 80

Marginal utility for 2nd hamburger = 80 - 200 = -120

Negative marginal utility

User Kohls
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5.0k points
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