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What will be the value of Marginal utility of the 4th unit

Units consumedTotal Utility derived (utils)
110
28
35
42

Solution

✅ Correct Option: 2

Option 2: -3 utils -> Marginal Utility (MU) is the change in total utility from consuming an additional unit. MU of 4th unit = Total Utility at 4 units - Total Utility at 3 units = 2 - 5 = -3 utils. This negative marginal utility indicates that consuming the 4th unit actually decreases overall satisfaction, suggesting the consumer has passed the point of maximum utility. -> correct

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