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From the chocolate-bar schedule, total utility is 50 utils at both 4 and 5 units, and 46 utils at 6 units. The marginal utility of the 6th unit is:
Aplus 4 utils
Bplus 46 utils
Cminus 4 utils
Dzero utils
Answer & Solution
Correct answer: C. minus 4 utils
1. $MU_6 = TU_6 - TU_5 = 46 - 50 = -4$ utils.
2. The negative value shows the 6th unit yields disutility and reduces total satisfaction.
3. Zero is the MU of the 5th unit, +4 ignores the sign, and +46 confuses MU with TU, so all are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.5_
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