An in-depth analysis of marginal utility exercises 1 to 4, exploring consumer behavior and surplus in different pricing scenarios.
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[...] In fact, from the 7th plate onwards, he would be paying per plate, which is more than the he would pay if he ordered the plates individually.e the marginal utility of the 6th tapas is negative, he will no longer enjoy eating these tapas. He will only take 6 and the price he would be willing to pay relative to his marginal utility for 6 tapas plates would be: 10 + 8 + 6 + 4 + 2 + 0 = 30?. Thus, by opting for the all-you-can-eat formula, Gerald obtains a consumer surplus equivalent to 25 - 30 = 5?. [...]
[...] Marginal Utility Exercises 1 to 4 on Marginal Utility 1. If the price of the tapasparagus plate offered by the restaurant is Gerald will order four plates of tapas since he derives a marginal utility equivalent to for the fourth plate of tapas but he would only be willing to pay for an additional plate. Compared to the marginal utility he will derive from these tapas plates, the consumer surplus he will perceive will be This means there will be a 12? [...]
[...] Although this surplus is lower than in previous cases, the total utility obtained is higher. 4. As the owner of the restaurant, assuming that the entire customer base has the same profile as Gerald, the highest price that could be offered without discouraging customers from taking the all-you-can-eat formula would be 30?. This corresponds to the total consumer utility with a consumer surplus equal to 0. This result is obtained by adding the marginal utility for each unit consumed by the customer before their utility becomes negative. [...]
