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WAEC Economics 2015 Question 14

Question 14

Theory of Consumer Behaviour

In order to calculate total utility (TU) from given levels of marginal utility (MU), one has to

  1. A.subtract MU from TU
  2. B.add MU from the various levels
  3. C.multiply MU by the initial TU.
  4. D.divide current MU by previous MU.
Show the answer and explanation

Answer: B (add MU from the various levels)

Explanation

Total utility is the sum of the marginal utilities of all units consumed.