In: Economics
Mike’s total utility from doing the same activity over and over is 50 utils after one repetition, 90 utils after two repetitions, 70 utils after three repetitions, 20 utils after four repetitions, -50 utils after five repetitions, and -200 utils after six repetitions. Write down his marginal utility for each repetition. Once Mike’s total utility begins to decrease, does each additional repetition of the activity hurt more than the previous one or less than the previous one?
Number | TU | MU |
0 | 0 | - |
1 | 50 | 50 |
2 | 90 | 40 |
3 | 70 | -20 |
4 | 20 | -50 |
5 | -50 | -70 |
6 | -200 | -150 |
From the above table we can see the MU decreases more than the previous one.
Mike’s total utility begins to decrease, and with each additional repetition of the activity hurt more than the previous one.