passwella.
Menu

JAMB Economics 1998 Question 2

Question 2

Theory of Consumer Behaviour

Units of consumption of commodity X | Marginal utility (Utils)
1 | 100
2 | 80
3 | 50
4 | 20
From the table above, the total utility for the individual who consumes 3 units of commodity X is

  1. A.50 utils
  2. B.150 utils
  3. C.230 utils
  4. D.250 utils.
Show the answer and explanation

Answer: C (230 utils)

Explanation

Total utility is the sum of the marginal utilities: 100 + 80 + 50 = 230 utils.