Total and Marginal Utility Calculation

Hi beliyin, let's solve this economics problem together. We're given a schedule for total utility and need to find the average and marginal utilities, plot the curves, and state a fundamental economic law.

First, for part a, let's define our formulas. Average Utility is Total Utility divided by the number of units consumed. Marginal Utility is the change in Total Utility from consuming one additional unit.

Now, let's construct a complete table to calculate these values for each level of consumption. We start with the given data for quantity and total utility.

For one bottle, total utility is sixteen. So average utility is sixteen divided by one, which is sixteen. Marginal utility is also sixteen as it's the first unit.

For the second bottle, Average Utility is twenty-six divided by two, giving thirteen. Marginal Utility is twenty-six minus sixteen, which equals ten.

For the third bottle, thirty-three divided by three gives an average utility of eleven. The marginal utility is thirty-three minus twenty-six, which is seven.