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Question : The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from the 10th unit.

Option 1: 0.5

Option 2: - 0.5

Option 3: 5

Option 4: - 5


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 11th Jan, 2024

Correct Answer: - 5


Solution : The correct option is - 5 .

Marginal utility is the additional satisfaction or usefulness that a consumer derives from consuming an additional unit of a good or service. To calculate the marginal utility from the 10th unit of commodity X, we need to find the change in total utility resulting from consuming the 10th unit.

According to the question, the total utility from 9 units of commodity X is 20 and the total utility from 10 units is 15. Therefore, the marginal utility of the 10th unit can be calculated as follows:

Marginal utility = change in total utility/change in quantity

Marginal utility = (15 - 20)/(10 - 9)

Marginal utility = - 5

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