The table below represents how Marco feels about chocolate candy bars. a. Fill in the missing values for total utility and marginal utility. Instructions: Enter your answers as a whole number. Chocolate Candy Bars and Marco's UtilityChocolate Candy Bars Total Utility (utils) Marginal Utility (utils)0 0 —1 25 2 173 54 4 5 66 46 –1 Suppose Marco currently has two candy bars. You tell Marco you will give him either a soda, which gives him 22 utils of happiness, or two additional candy bars. b. Which is he likely to prefer?
Question
The table below represents how Marco feels about chocolate candy bars. a. Fill in the missing values for total utility and marginal utility. Instructions: Enter your answers as a whole number. Chocolate Candy Bars and Marco's UtilityChocolate Candy Bars Total Utility (utils) Marginal Utility (utils)0 0 —1 25 2 173 54 4 5 66 46 –1 Suppose Marco currently has two candy bars. You tell Marco you will give him either a soda, which gives him 22 utils of happiness, or two additional candy bars. b. Which is he likely to prefer?
Solution
The table is incomplete, so I'll fill in the missing values first.
The total utility is the total satisfaction received from consuming a good or service. The marginal utility is the additional satisfaction received from consuming one more unit of a good or service.
Here's the completed table:
| Chocolate Candy Bars | Total Utility (utils) | Marginal Utility (utils) |
|---|---|---|
| 0 | 0 | — |
| 1 | 25 | 25 |
| 2 | 42 | 17 |
| 3 | 54 | 12 |
| 4 | 63 | 9 |
| 5 | 66 | 3 |
| 6 | 46 | -20 |
Now, let's answer the second part of the question.
If Marco currently has two candy bars, the marginal utility of getting two more candy bars would be the sum of the marginal utilities of the third and fourth candy bars, which is 12 utils + 9 utils = 21 utils.
On the other hand, a soda gives him 22 utils of happiness.
Since 22 utils > 21 utils, Marco is likely to prefer the soda over two additional candy bars.
Similar Questions
Fill in the missing values for total utility and marginal utility. Instructions: Enter your answers as a whole number. Chocolate Candy Bars and Marco's UtilityChocolate Candy Bars Total Utility (utils) Marginal Utility (utils)0 0 —1 25 2 173 54 4 5 66 46 –1
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