Question

Suppose the following table reflects the total satisfaction (utility) derived from eating slices of pizza. Calculate the marginal utility of each slice of pizza and answer two questions about marginal utility. a. What is the marginal utility of each slice of pizza? Instructions: Complete each of the cells below. Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Total Utility Marginal Utility Quantity Consumed No slices First slice Second slice Third slice Fourth slice Fifth slice Sixth slice Seventh slice b. Marginal utility first diminishes with slice number c. Marginal utility first turns negative with slice number

Answer 1

a.	Quantity consumed		Total utility	Marginal utility
	No slices		0	-
	First slice		15	15
				(15-0)
	Second slice		27	12
				(27-15)
	Third slice		37	10
				(37-27)
	Fourth slice		45	8
				(45-37)
	Fifth slice		50	5
				(50-45)
	Sixth slice		53	3
				(53-50)
	Seventh slice		51	-2
				(51-53)
b.	Marginal utility first diminishes with slice number					2
	(Marginal utility decreases from 15 to 12)
c.	Marginal utility first turns negative with slice number					7
	(Marginal utility=-2)