Figure 20-2
Quantity of A
Average Utility
of A
Quantity of B
Average Utility
of B
1
7
1
19
2
8
2
12
3
7
3
9
4
6
4
7
5
5
5
5
6
4
6
3
In Figure 20-2, the total utility of the third unit of A is
Select one:
a. 15.
b. 12.
c. 21.
d. 20.
e. 18.
Solution
The formula to calculate total utility = Average utility for quantity X * Number of units(quantity).
The total utility of the third unit of A = 7 * 3 = 21.
Hence option C = 21 is the correct answer.
I hope my solution solves your query.
Regards.
.
Figure 20-2 Total Utility of Third Unit of A is 21
1. Figure 20-2
Quantity of A
Average Utility
of A
Quantity of B
Average Utility
of B
1
7
1
19
2
8
2
12
3
7
3
9
4
6
4
7
5
2. 5
5
5
6
4
6
3
In Figure 20-2, the total utility of the third unit of A is
Select one:
a. 15.
b. 12.
c. 21.
d. 20.
e. 18.
Quantity of A
Average Utility
of A
Quantity of B
Average Utility
of B
1 7 1 19
2 8 2 12
3 7 3 9
4 6 4 7
5 5 5 5
6 4 6 3
3. Solution
The formula to calculate total utility = Average utility for quantity X * Number of
units(quantity).
The total utility of the third unit of A = 7 * 3 = 21.
Hence option C = 21 is the correct answer.
I hope my solution solves your query.
Regards.
