Given the table demonstrating the law of diminishing marg...
Given the table demonstrating the law of diminishing marginal utility below, what is the value of X?
|
No. of oranges Consumed |
Total Utility | Average Utility |
Marginal Utility |
| 1 | 9 | 9 | - |
| 2 | 16 | 8 | x |
| 3 | 24 | 8 | 6 |
| 4 | 30 | 7.5 | 4 |
| 5 | 34 | 6.8 | y |
| 6 | 36 | 6 | 2 |
| 7 | 36 | 5.1 | 0 |
0.5
7
0
8
Correct answer is B
The Marginal Utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. It can be calculated by subtracting the total utility of the previous consumption from the total utility of the current consumption. In this case, the total utility of consuming 2 oranges is 16 and the total utility of consuming 1 orange is 9. Therefore, the marginal utility (X) of the second orange is 16 - 9 = 7.
Macro-economics is a study of economics science from the point of view of ...
An imperfect market exist where ...
An increase in the quantity supplied of commodity suggests ...
Which of the following is not a type of unemployment ...
Standardization of products or services is a feature of ...
The difference between demand and wants is in the ...
The use of tax and expenditure policy to regulate the economy is known as ...
The mean is the best measure of central tendency because it ...
The problem of “how to produce” in any economy is solved by ...