Question

From the following data answer the question:

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

What is the average utility at 3rd unit?

• A. 36.7
• B. 46.7
• C. 37.7
• D. 26.7

Answer 1

The correct option is C 37.7

Average utility refers to the total utility divided by number of units consumed.

Here, total utility = 40+38+35 = 113

number of units(given) = 3

average utility = 113/3 = 37.7