Question

Jeremy's level of satisfaction from consuming the first cookie was 25 utils. The second cookie increased the level of satisfaction by 20 utils. Jeremy's total level of satisfaction after three cookies was 60. Thus, the marginal utility for the third cookie is:a. 15.b. 60.c. 45.d. 25.

Answer 1

Answer: a) 15 utils

Step-by-step explanation:

Let marginal utility= MU

MU of first cookie= 25 utils

MU of second cookies= 20

utils

MU of third cookies= ?

Total MU= 60 utils

MU of third cookies= Total MU- first MU- Second MU

MU of third cookies= 60 utils -

25 utils - 20 utils

MU of third cookies = 15 utils