Chapter 9R, Problem 20MCQ

To determine

What a person will receive if he/she purchased 5 video games and 1 ball toss game.

Explanation of Solution

If Jill purchased 5 video games, then the marginal utility would be

  $\begin{array}{l}\text{= }\left(\text{new total utility}-\text{previous total utility}\right)\hfill \\ =100-90\hfill \\ =10\hfill \end{array}$

And, if Jill purchased 1 ball toss game, then then the marginal utility would be

  $\begin{array}{l}=\left(\text{new total utility}-\text{previous total utility}\right)\hfill \\ =70-0\hfill \\ =70\hfill \end{array}$

Therefore, the option a is correct.

Economics Concept Introduction

Introduction:

Marginal utility refers to the benefit that is gained by consuming one additional source or unit of any commodity.