📚 Learning Guide
Marginal Utility and Budgeting
easy

If a consumer receives 10 units of total utility from consuming 2 apples, what is the marginal utility of the third apple if it increases total utility to 13 units?

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Learning Path
Learning Path

Question & Answer
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Understand Question
2
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3
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Choose the Best Answer

A

3

B

5

C

10

D

13

Understanding the Answer

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Answer

Marginal utility is the extra satisfaction or benefit a consumer gets from consuming one more unit of a good. In this case, the consumer gets 10 units of total utility from eating 2 apples. When they eat a third apple, their total utility rises to 13 units. To find the marginal utility of the third apple, we subtract the total utility from 2 apples (10 units) from the total utility after eating the third apple (13 units). So, the marginal utility of the third apple is 13 minus 10, which equals 3 units of utility.

Detailed Explanation

The marginal utility is the extra satisfaction from one more apple. Other options are incorrect because This answer suggests the extra satisfaction is 5; This answer says the extra satisfaction is 10.

Key Concepts

Total utility
Topic

Marginal Utility and Budgeting

Difficulty

easy level question

Cognitive Level

understand

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