Brenda likes to have bagels and coffee for breakfast. The accompanying table shows Brendas total utility from

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Brenda likes to have bagels and coffee for breakfast. The accompanying table shows Brenda€™s total utility from various consumption bundles of bagels and coffee.
Brenda likes to have bagels and coffee for breakfast. The

Suppose Brenda knows she will consume 2 cups of coffee for sure. However, she can choose to consume different quantities of bagels: she can choose either 0, 1, 2, 3, or 4 bagels.
a. Calculate Brenda€™s marginal utility from bagels as she goes from consuming 0 bagel to 1 bagel, from 1 bagel to 2 bagels, from 2 bagels to 3 bagels, and from 3 bagels to 4 bagels.
b. Draw Brenda€™s marginal utility curve of bagels. Does Brenda have increasing, diminishing, or constant marginal utility of bagels?

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Microeconomics

ISBN: 978-1429283434

3rd edition

Authors: Paul Krugman, Robin Wells

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