Answers
Solution:-
Quantity | Total Utility | Marginal Utility |
0 | 0 | - |
1 | 26 | 26 |
2 | (26 + 18) = 44 | 18 |
3 | 57 | (57 – 44) = 13 |
4 | (71 – 5) = 66 | (66 – 57) = 9 |
5 | 71 | 5 |
6 | 71 | 0 |
Since Macro has two chocolate candy bars, so total utility from this is 44. If he gets two additional chocolate candy bars, then her total utility becomes 66. Instead if he gets soda then his total utility becomes 44+26 = 70.
So he is likely to prefer a soda.
.