The TU from consuming 3 units of a commodity is 75 utils and the MU of the 4th unit is 10 utils. What is the TU after consuming 4 units?
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Explanation:
When total utility is maximum at the 5th unit, marginal utility is 0. It is the point of satiety for the consumer. When marginal utility is negative (the 6th and the 7th units) then Total utility is decrease.
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