Brenda likes to have bagels and coffee for breakfast. The accompanying table shows Brenda’s total utility from various consumption bundles of bagels and coffee.
CONSUMPTION BUNDLE
Quantity of bagels Quantity of Coffee (cups) Total Utility (Utils)
0 0 0
0 2 28
0 4 40
1 2 48
1 3 54
2 0 28
2 2 56
3 1 54
3 2 62
4 0 40
4 2 66
Suppose Brenda knows she will consume 2 cups of coffee for sure. However, she can choose to consume different quantities of bagels: she can choose either 0, 1, 2, 3, or 4 bagels.
(a) Find Brenda’s total utility and use that information to calculate her marginal utility (MU) from bagels as she goes from consuming 0 bagel to 1 bagel, from 1 bagel to 2 bagels, from 2 bagels to 3 bagels, and from 3 bagels to 4 bagels.
(b) Draw Brenda’s marginal utility curve of bagels.
(c) Does Brenda have increasing, diminishing, or constant marginal utility of bagels?