Suppose a consumer's total utility from movie tickets is as follows: 1 ticket = 10 utils, 2 tickets = 18 utils, 3 tickets = 25 utils, 4 tickets = 31 utils, 5 tickets = 36 utils. What is the marginal utility of the 5th movie ticket?

• A. 1 utils
• B. 36 utils
• C. 5 utils
• D. 6 utils

Answer: (C)

Verified step by step guidance

1. Understand that marginal utility (MU) is the additional utility gained from consuming one more unit of a good or service.
2. Identify the total utility (TU) from consuming 4 tickets and 5 tickets from the given data: TU(4) = 31 utils and TU(5) = 36 utils.
3. Calculate the marginal utility of the 5th ticket by subtracting the total utility of 4 tickets from the total utility of 5 tickets using the formula: \(MU_5 = TU_5 - TU_4\).
4. Substitute the values into the formula: \(MU_5 = 36 - 31\).
5. Interpret the result as the additional satisfaction or utility the consumer gains from consuming the 5th movie ticket.