Question

The total utility derived by Shyam by eating 6 apples is 300 utils. Marginal Utility of the 7^th apple is 30 utils. The total utility for 7 apples will be ______ utils.

Options

• 330

• 270

• 300

• 30

Answer 1

The total utility derived by Shyam by eating 6 apples is 300 utils. Marginal Utility of the 7^th apple is 30 utils. The total utility for 7 apples will be 330 utils.

Explanation:

Total utility from seven apples equals TU from six apples plus MU of the seventh apple. $$TU_7=TU_6+MU_7=300+30=330\text{ utils}.$$