Answer to Question #87512 in Microeconomics for Nicolas

Question

Paul mabaso's average utility from the consumption of 8 chocolate s is 25 utils per slab.if the marginal utility of the 9 slabs ?explain.what will happen to his total utility

Answer 1

Due to the law of diminishing marginal utility, the satisfaction that Paul derives decreases with the consumption of an extra chocolate slab. Therefore, the marginal utility of the 9^th slab will be lower than the average utility. However, his total utility will increase.