The Table Given Below Depicts the Total Utility Derived from the Consumption

question 93

Multiple Choice

The table given below depicts the total utility derived from the consumption of a good.Table 7.1

-According to Table 7.1, marginal utility _____.

• A)increases from the first unit to the third unit and then declines
• B)decreases from the third unit to the fifth unit only
• C)increases from the first unit to the third unit and decreases from the third unit to the fifth unit
• D)decreases from the first unit to the fifth unit
• E)increases from the fourth unit

---

Definitions:

Efficiency

The extent to which resources are used in the most effective way to produce goods and services, minimizing waste.

Equality

Equality refers to the state of being equal, especially in status, rights, and opportunities.

Total Surplus

Total surplus refers to the sum of consumer surplus and producer surplus in a market, representing the overall benefit that market participants gain from engaging in trade.

High-cost Producer

A producer or company which has higher costs of production compared to competitors, often due to inefficient processes or higher input costs.