ECN 104 Lecture Notes - Marginal Product, Bell Canada, Indifference Curve
19 Mar 2013
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Fill in the following table on the total and marginal utilities of a certain product a. Use your results to answer the following questions. Explain the shape of both of the curves. (a)graph both the total utility and marginal utility curves together on the same graph. (b) (c)identify the point where utility is maximized on both curves. Units of product a y t i l i t. The total utility curve has the bell shape because as the quantity is increased from smaller to larger there is a utility gain from greater consumption. However, as quantity increases there is less and less utility gain until utility starts to decline and the curve becomes upward sloping. The marginal utility curve clearly displays the law of diminishing marginal utility. This is at the quantity of 4. 5 and the total utility value of 50. On the marginal utility curve, the maximized point is the point where marginal utility is zero.
