The table below depicts the total utility when consuming cups of coffee. Cups of Coffee (cups) Total Utility (utils)0 01 42 73 8 What is the marginal utility of the second cup of coffee?Multiple choice question.7 utils11 utils3 utils4 utils
Question
The table below depicts the total utility when consuming cups of coffee. Cups of Coffee (cups) Total Utility (utils)0 01 42 73 8 What is the marginal utility of the second cup of coffee?Multiple choice question.7 utils11 utils3 utils4 utils
Solution
The marginal utility can be calculated by subtracting the total utility of the previous cup from the total utility of the current cup.
In this case, to find the marginal utility of the second cup of coffee, you subtract the total utility of the first cup from the total utility of the second cup.
So, the calculation would be:
Total utility of the second cup - Total utility of the first cup = Marginal utility of the second cup
From the table, the total utility of the second cup is 7 utils and the total utility of the first cup is 4 utils.
So, 7 utils - 4 utils = 3 utils
Therefore, the marginal utility of the second cup of coffee is 3 utils.
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