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 the 2nd unit?

• A. 39
• B. 38
• C. 36
• D. 35

Answer 1

Answer: (A)

39

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

Therefore, at the 2nd unit, average utility is = 78/2 = 39