"As consumers consume more units of a good their marginal utility will eventually fall." a) Explain the underlined term. (10 marks) b) Suggest a good or a service which customer's additional consumption may not result in a fall in his/her marginal utility. Explain your answer. (10 marks) c) Complete the following table in your answer book. State at what point diminishing marginal utility sets in and explain your choice. (10 marks) Number of units consumed 2 3 4 5 6 Total utility in units 10 35 75 95 110 115 Marginal utility in units 10 25 40 ?1 ?2 Question 2 (70 marks) The table below shows the short run production costs for a small firm producing and selling kitchen furniture in Oakville, Toronto. Number of units of output Fixed Costs ($) Variable Costs ($) Total Costs ($) 400 600 1,000 400 1,200 1,600 400 1,850 2,250 UIAWN 400 2,900 3,300 400 4,100 4,500 a) Using the information in the table above calculate the following: 1) The marginal cost of producing the 4th unit. ii) The average cost of producing 5 units. iii) The profit earned by the firm selling 5 units of output at $1,200 per unit. (Show your workings.) (30 marks) b) Using the information in the table above, draw the firm's short run average cost (AC) curve. Explain the reasons for its shape. (40 marks)