Expert Answer
This solution was written by a subject matter expert. It’s designed to help students like you learn core concepts.
The marginal utility is the addition to the total utility when an additional unit of output is consumed.x
The marginal utilities is calculated from the total utility by subtracting successive unit of total utility from previous unit total utility.
The table gives the calculation of missing values of marginal utilities and total utilities.
The formula for calculating Marginal utility is, MUN= TUN 1 – TUN.
No. of Cheeseburgers
Total Utility from cheeseburgers
Marginal utility of cheeseburgers
Bags of French fries
Total Utility from French fries
Marginal utility of French fries
1
80
80
1
50
50
2
140
140-80=60
2
50 28= 78
28
3
140 40 = 180
40
3
92
14
4
200
20
4
92 7= 99
7
5
210
210-200= 10
5
102
102-99= 3
The values of total utilities and marginal utilities are calculated in the table.
No. of Cheeseburgers
Total Utility from cheeseburgers
Marginal utility of cheeseburgers
Bags of French fries
Total Utility from French fries
Marginal utility of French fries
1
80
80
1
50
50
2
140
60
2
78
28
3
180
40
3
92
14
4
200
20
4
99
7
5
210
10
5
102
3