The new Spooky Tooth album just came out. You have listened to it six times today and experienced the units of utility per listen shown below:

The new Spooky Tooth album just came out. You have listened to it six times today and experienced the units of utility per listen shown below:


  1        13

  2        11

   3         8

   4         4

  5         0

   6        – 6

1) Using excel or neatly creating by hand and scanning, draw a graph  showing marginal utility based on the material above. Explain what it means with specific reference to the numbers used in the graph.

2)graph of total utility. Explain what it means based on the numbers calculated.

3) In order to maximize utility, how many times should the album be listened to? Provide an explanation.

4) In terms of utility, what could motivate you to switch from another activity and begin listening to the album?

5) How can marginal utility be used as a guiding principle when deciding how many different products your firm should market? Provide an original example.

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