Answered

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Solve the problems:
The total utility received from consuming 10, 11, and 12 tacos are 100, 108, 115, respectively. What is the average utility of consuming 11 tacos? What about 12 tacos? What are the marginal utilities of the 11th and 12th tacos?​

Sagot :

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ANSWERS:

8/1 = 8 11th tacos

7/1 = 7 12th tacos

SOLUTION AND EXPLANTION:

Given:

Quantity consumed 10, 11, 12 tacos

Total utility 100,108 and 115

Formula: Average utilities = Utility/Number of units

Solution:

108/11 = 9.81 - 11th tacos

115/12 = 9.58 - 12th tacos

Marginal utilities = Change in total utility/Change in number of units consumed

Solution:

Change in total utility:

  • 108-100 = 8
  • 115-108 = 7

Change in number of units consumed

  • 11-10 = 1
  • 12-11 = 1

Marginal utilities = Change in total utility/Change in number of units consumed

  • 8/1 = 8 11th tacos
  • 7/1 = 7 12th tacos

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