Question

Suppose alice receives 200 utils from consuming one hamburger and 80 utils from consuming a second hamburger. what is the marginal utility of the second hamburger?

Answer 1

Divide the difference in total utility over the difference in units

In this case, consuming one more hamburger added 80 utils, which is the marginal utility added.

Answer 2

-120

Step-by-step explanation:

Since the utility is decreasing our marginal utility will be negative.

Total Utility

1st hamburger = 200

2nd hamburger = 80

Marginal utility for 2nd hamburger = 80 - 200 = -120

Negative marginal utility