The total utility from 9 units of commodity x is 20 and

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The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from 10th unit.

1. 0.5
2. –0.5
3. 5
4. –5

Correct Option: D

Marginal Utility = Change in Total Utility / Change in number of Units consumed. The first component of the formula is to calculate the change in total utility. The second component of the marginal utility formula is the change in the number of units that have been consumed. This is done by subtracting the number that is currently being consumed from a previously consumed amount. So Marginal Utility (MU) from 10th Unit = TU₁₀ - TU₉= 15 – 20= –5