The table below shows the hypothetical utility schedule for a consumer of chocolate candy bars. Marginal utility becomes negative with the consumption of the: Number consumed Total utility0 01 52 113 184 245 306 357 32Multiple Choicefourth candy bar.fifth candy bar.sixth candy bar.seventh candy bar.
Question
The table below shows the hypothetical utility schedule for a consumer of chocolate candy bars. Marginal utility becomes negative with the consumption of the: Number consumed Total utility0 01 52 113 184 245 306 357 32Multiple Choicefourth candy bar.fifth candy bar.sixth candy bar.seventh candy bar.
Solution
To answer this question, we need to understand the concept of marginal utility. Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. It can be calculated by the change in total utility divided by the change in the quantity consumed.
Let's calculate the marginal utility for each additional candy bar:
- From 0 to 1 candy bar: (5-0) = 5
- From 1 to 2 candy bars: (11-5) = 6
- From 2 to 3 candy bars: (18-11) = 7
- From 3 to 4 candy bars: (24-18) = 6
- From 4 to 5 candy bars: (30-24) = 6
- From 5 to 6 candy bars: (35-30) = 5
- From 6 to 7 candy bars: (32-35) = -3
As we can see, the marginal utility becomes negative when the consumer consumes the seventh candy bar. Therefore, the answer is "seventh candy bar".
Similar Questions
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