Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

The table sets out the total utility a consumer obtains from drinking water. quantity consumed (bottles); total utility: 0->0, 1->30, 2->40, 3->48, 4->54, 5->58. What conclusion can be drawn from this table?

  • AMarginal utility increases as consumption increases.
  • BThe consumer cannot switch expenditure to another product to increase total utility.
  • CThe marginal utility of the 3rd unit is 8.
  • DThe marginal utility of the 5th unit is 2.

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