From the following total utility schedule Qx 0 1 2 3 4 5 6 7 TUx 0 4 14 20 24 26 26 24 a. Derive the marginal utility schedule. b. Plot the total and the marginal utility schedules. c. Determine where the law of diminishing marginal utility begins to operate. d. Find the saturation point.

/in /by

From the following total utility schedule

Qx 0 1 2 3 4 5 6 7

TUx 0 4 14 20 24 26 26 24

a. Derive the marginal utility schedule.

b. Plot the total and the marginal utility schedules.

c. Determine where the law of diminishing marginal utility begins to operate.

d. Find the saturation point.

You might also like
You are selling a product in an oligopoly market. What factors would motivate you to collude with other firms in the market?
Consider a consumer who consumes two goods X and Y, priced at PX and PY, respectively. Suppose price of good X falls to PX’. Decompose price effect of this price increase into substitution and income effect using Slutsky method.
Suppose that BJP imposes a tariff on imported autos to protect Indian auto industry from foreign competition. Assuming that India is a price taker in the world auto market , shown on a diagram : change in quantity of imports, loss of Indian consumers, gain to indian manufacturers, government revenue, dead weight loss associated with tariff.
If the movement of the supply curve for the product took place, but the price failed to adjust to the new level of market equilibrium, which one of the following would likely be witnessed in the market for the product? A. The new market price does not need to adjust, as the price can remain constant and the market will still be in equilibrium. B. There will an excess supply in the market. C. The price is not a significant factor in determining the market equilibrium. D. There will be excess demand in the market.
For a price floor to be effective, it must be set ________ the equilibrium price, while a price ceiling must be set ________ the equilibrium price to be effective. A. below; above B. above; below C. below; below D. above; above
Suppose you are a producer of necessities. How can the concept of price elasticity of demand be useful to you when you are determining your pricing strategies? [9 marks]
A consumer consumes two agricultural products: Red Meat, and Tomatoes according to the following utility function: U = RT Write down the budget constraint (budget line equation) for this consumer. Determine the quantities that the consumer should consume of each of the two products. Calculate the value of the lagrangian multiplier. Derive the demand function for Red Meat. Derive the demand function for Tomatoes.
THE FOLLOWING TABLE SHOWS THE TOTAL UTILITY GAINED FROM THE CONSUMPTION OFFANTA LEMON IN A WEEK.LEFT IS QUANTITY AND RIGHT IS TOTAL UTILITY1-202-353-454-535-586-587-48 1. CALCULATE THE MARGINAL UTILITY. WHAT DO YOU OBSERVE?2. SKETCH THE TOTAL UTILITY AND MARGINAL UTILITY CURVES.3. IF THE PRICE OF FANTA LEMON INCREASES FROM RS.8 TO RS.10, HOW WILL ITAFFECT ITS CONSUMPTION?EXPLAIN YOUR ANSWER USING THE DATA ABOVE.