Utility is a type of function that occurs in economics When

Last updated: 9/11/2023

Utility is a type of function that occurs in economics When a consumer receives x units of a certain product a certain amount of pleasure or utility U is derived The graph represents a typical utility function a Find the average rate of change of U as x changes from 0 to 1 from 1 to 2 from 2 to 3 from 3 to 4 b Why do the average rates of change decrease as x increases a The average rate of change of U as x changes from 0 to 1 is Type an integer or a decimal The average rate of change of U as x changes from 1 to 2 is Type an integer or a decimal The average rate of change of U as x changes from 2 to 3 is Type an integer or a decimal The average rate of change of U as x changes from 3 to 4 is Type an integer or a decimal b Why do the average rates of change decrease as x increases Utility pleasure units AU 150 100 50 2 102 3 128 1 64 1 1 4 149 2 3 Number of units of product OA The average rate of change is the ratio of the change in utility U divided by the change in number of units of product x While U is increasing as x increases the change in U is decreasing Therefore the average rates of change decrease as x increases Q Q Time Remaining 01 21 04 G OB The average rate of change is the ratio of the number of units of product x divided by the change in utility U While U is decreasing as x increases the change in U is increasing Therefore the average rates of change decrease as x increases OC The average rate of change is the ratio of the number of units of product x divided by the change in utilitv U While U is increasing as x increases the change in U is decreasing Therefore Next