The marginal utility of the 8th can of beer is Price of Can of Beer = $0.50Cans per Week12345678910Total Utility152942546575.758696105113Price of Slice of Pizza = $1.00Total UtilitySlices per Week12345678910326391115.75136154171187201213

In economics, marginal utility refers to the additional satisfaction or benefit (utility) a buyer…

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The marginal utility of the 8th can of beer is

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

The marginal utility of the 8th can of beer is

Price of Can of Beer = $0.50
Cans per Week
1
2
3
4
5
6
7
8
9
10
Total Utility
15
29
42
54
65
75.75
86
96
105
113
Price of Slice of Pizza = $1.00
Total Utility
Slices per Week
1
2345678
9
10
32
63
91
115.75
136
154
171
187
201
213

Definition Definition Satisfaction derived from the consumption of an additional unit of any commodity.

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