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Relation between Mean, Median and Mode

Average utili...

Question

Average utility at 9th unit?

A

29

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B

22.7

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C

26

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D

23.2

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Solution

The correct option is B 22.7
Marginal utility of the 5th unit will be total utility of 5th unit- total utility of 4th unit that is 170-144= 26. Now the total utility of 9th unit will be the summation of the marginal utilities of all the previous terms that is 40+38+35+31+26+20+13+5-4= 204. The average utility of 9th unit will be total utility of 9th unit by 9 that is 204/9= 22.7 approximately.

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Slices of Bread	Total Utility	Average Utility	Marginal Utility
1	40	40	40
2	78	---	38
3	---	---	35
4	144	36	31
5	170	---	---
6	---	31.7	20
7	---	---	13
8	---	26	5
9	---	---	-4

Average utility at 9th unit is _____.

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