Multiple choice

From the following data answer the question: Slices of Bread Total Utility Average Utility Marginal Utility 1 40 40 40 2 78 --- 38 3 --- --- 35 4 144 36 31 5 170 --- --- 6 --- 31.7 20 7 --- --- 13 8 --- 26 5 9 --- --- -4 Average utility at the 5th unit = _____.

  1. 34

  2. 54

  3. 24

  4. 42
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A Correct answer
Explanation

Average Utility = Total Utility / Units. At 5th unit, Total Utility is 170. Average Utility = 170 / 5 = 34.

AI explanation

The average utility is calculated by dividing the total utility by the number of units. At the 5th unit, the total utility is given as 170. Dividing this total utility of 170 by 5 units gives an average utility of 34.

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