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

Average utility at 9th unit is _____.

• A. 27.2
• B. 22.7
• C. 26
• D. 23.2

Answer 1

Answer: (B)

22.7

Average utility is obtained by dividing the total utility by number of units consumed.

Here, total utility at 9th unit = total utility at 5th unit+marginal utility at 6th, 7th, 8th, 9th =170+20+13+5-4 = 204

number of unit = 9

average utility = 204/9 = 22.7