Utility maximization

  PROBLEM: The following Table shows the quantity consumed of good X and the total utility (Ux) obtained with each quantity: (I) Quantity Consumed (Qx) (2) Total Utility (Ux) (3) Marginal Utility (MUx) 0 0 1 50 SO 2 90 14 0 3 105 I 5 4 116 I I 5 120 4.4. 6 120 0 7 115 — 5 8 100 —1r Based on the Utility Theory and the above table, answer the following FIVE questions: (i) Find out Marginal Utility of X with each quantity consumed (write the MU equation, below and fill in column number 3, above). MUx = (ii) Discuss the concept of Marginal Utility.     (iii) What is the optimum quantity of X that the consumer should consume (Consumer's Equilibrium Quantity)? And why? (iv) Graph the Total Utility and Marginal Utility curves, showing the equilibrium points.