When do we differentiate between using the formula MU(x) = TU(x) – TU(x – 1) and Marginal Utility = Change in Total Utility (ΔTU) / Change in No. of Units Consumed (ΔQ) when calculating marginal utility. This is confusing to me. On that note, which formula should we use for the below scenario? Part 1 Given the quantity of total movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for each, calculate the marginal utility and the marginal utility per dollar for movie tickets and average concession stand items. Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets. Quantity of Tickets Consumed Total Utility Marginal Utility Movie Ticket Price Marginal Utility Per Dollar for Movie Tickets 0 0 --- --- --- 200 150 $10.00 400 275 $10.00 600 375 $10.00 800 450 $10.00 1,000 500 $10.00 1,200 525 $10.00 1,400 525 $10.00
When do we differentiate between using the formula MU(x) = TU(x) – TU(x – 1) and
On that note, which formula should we use for the below scenario?
Part 1
Given the quantity of total movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for each, calculate the marginal utility and the marginal utility per dollar for movie tickets and average concession stand items.
Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets.
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Quantity of Tickets Consumed |
Total Utility |
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Marginal Utility |
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Movie Ticket Price |
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Marginal Utility Per Dollar for Movie Tickets |
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0 |
0 |
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--- |
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--- |
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--- |
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200 |
150 |
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$10.00 |
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400 |
275 |
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$10.00 |
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600 |
375 |
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$10.00 |
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800 |
450 |
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$10.00 |
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1,000 |
500 |
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$10.00 |
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1,200 |
525 |
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$10.00 |
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1,400 |
525 |
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$10.00 |
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