RESOURCES:

HYPOTHESIS UTILITY SCHEDULE FOR SIOPAO Unit Purchased Total Utility Marginal Utility 40 40 2 90 50 3 170 80 270 100 350 80 The table shows the various unit purchased, the total utility for each unit purchased, and the corresponding marginal utility. Th3 derivation of marginal utility is shown below. MATHEMATICAL DERIVATION OF MARGINAL UTILITY: How do we derive marginal utility? Marginal utility is simply the change in total utility divided by the change in quantity, Thus MU= to be continue ..pages 81 Expanding our equation, we can solve for marginal utility using the following equation: Where MU= TU2-TU1 Q2- Q2 TU2= the new total utility TU1= the original utility Q2 =the new quantity consumed Q1 = the original quantity consumed Applying the formula, we can derive the marginal utility for the total utility presented in Table 4.2 Thus, if we want to determine the marginal utility from the consumption of two pieces of siopao to three pieces, we can simply apply the formula presented above. MU = 170-90 3-2 MU = 80Part 1V Computation ( Show your Solution) Direction: Determine the marginal utility HYPOTHETICAL UTILITY SCHEDULE FOR CHICKEN SANDWICH Unit Purchased Total Utility Marginal Utility 11 204 24 318 32 456 46 588 52 624 68 784 72 872 88 990 94 1046 102 2010 46