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 the 5th unit = _____.

• A. 34
• B. 54
• C. 24
• D. 42

Answer 1

The correct option is A 34

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

Here, total utility at 5th unit = 170

number of unit = 5

average utility = 170/5 = 34