1. Complete the following table and answer the questions below: LO1

a. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know?

b. “A rational consumer will purchase only 1 unit of the product represented by these data, since that amount maximizes marginal utility.” Do you agree? Explain why or why not.

c. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not.

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Units Consumed Total Utility Marginal Utility 0 0 10 2 10 8 3 25 4 30 5 3 6 34