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.
Opportunity cost helps the government to ...
Which of the following is not the function of a commercial bank? ...
What is the growth rate of employment? ...
Government of West African countries levy taxes to ...
The term M \(^3\) comprises M \(^1\) together with deposits on deposit account held by_______ ...
The release of a liquid petroleum hydrocarbon into the environment is_______ ...
A capital market differs from the money market in that in the former ...