You are given the following data about the utility of coffee. Total Utility (TU) is measured in
Question:
You are given the following data about the utility of coffee. Total Utility (TU) is measured in 100’s of utils and the quantity of coffee (Q) is measured in the number of cups of coffee consumed. You will be making a presentation about utility to your Microeconomics class. The data is listed below. The source for your knowledge about utility is the book Coffee Utility and The Individual, 5th edition, by Herman Franks, Pantheon Press Publishers, Toronto, Ontario, 2019.
Total Utility (TU) (0, 10, 17, 25, 31, 35, 35, 26, 18), and Quantity of coffee (0, 1, 2, 3, 4, 5, 6, 7, 8).
1. a. In one clearly and accurately labeled graph, created using Excel, graph your Total Utility (TU) curve of your coffee consumption. This will be graph # 2 in your presentation.
b. In one clearly and accurately labeled graph, created using Excel, graph your Marginal Utility (MU) curve of your coffee consumption. MU is measured in 100’s utils. This will be graph # 3 in your presentation. THIS IS COPYRIGHTED MATERIAL. Be certain to calculate MU, which you will need for part c).
c. In one clearly and accurately labeled table, created using Excel, list your data for MU, being certain to show all your work for calculating MU. This will be Table # 1 in your presentation.
d. Based solely on your graphs in parts a and b, and specifically referencing both graphs, explain.
a. where TU and MU have hit their peak and why,
b. explain where and why diminishing marginal utility is located on both graphs, and
c. explain where negative marginal utility is located on both curves and why.