You Have Determined That the Following Utility Values Can Be

question 141

Essay

You have determined that the following utility values can be obtained by reading your Economics book. $$\begin{array} { | c | c | c | } \hline \text { Number of Chapters } & \text { Total Utility } & \text { Marginal Utility } \\\hline 0 & 0 & \\\hline 1 & 2 & \\\hline 2 & 4 & \\\hline 3 & 6 & \\\hline 4 & 8 & \\\hline 5 & 10 & \\\hline 6 & 12 & \\\hline\end{array}$$ (a)Compute marginal utility.
(b)Does the example illustrate the principle of diminishing marginal utility? Explain.

---

Definitions:

Home Construction

The process of building residential structures, such as houses and apartments, often involving design, planning, and assembly of materials.

Demand

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.

Supply

The total amount of a product or service that is available for purchase at any given price.

Labor Union

A collective organization of employees who bargain as a unit with employers.