a) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit consumed?
____ Utils
b) For the utility function above, if the price of the good is $2, what is the Marginal Utility per Dollar for the second unit consumed?
___ Utils.

Answer :

The Marginal Utility per Dollar for the fourth unit consumed is 2.50 utils.

The Marginal Utility per Dollar for the second unit consumed is 9 utils.

Utility is the total satisfaction a consumer derives from consuming a good or service.

Marginal utility is the change in total utility when a consumer increases the unit consumer by one.

Marginal utility = change in total utility / change in price

Marginal Utility per Dollar for the fourth unit consumed

Marginal utility when the fourth unit is consumed = (64 - 54) / (4 - 3)

10 / 1 = 10.

Marginal utility per dollar = 10 / $4 = 2.50 utils

Marginal Utility per Dollar for the second unit consumed

Marginal utility of the second unit = (40 - 22) / (2 - 1) =

18 / 1 = 18

Marginal utility per dollar = 18 / $2 = 9 utils

Please find attached the table of the utility function. To learn more, please check: https://brainly.com/question/14850856?referrer=searchResults

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