Explain the Concept of diminishing marginal return. 2. How is utility maximized? Use the below table to calculate: Quantity of Goods Consumed, Total Utility, Marginal Utility (MU). a) Complete the above utility Schedule. b) Draw the meaning utility Curve. c) At what quantity does TU equal MU?

Here are the solutions to your assignment questions:

1. Explain the concept of diminishing marginal return.
The concept of diminishing marginal utility states that as an individual consumes more units of a specific good, the additional satisfaction (utility) gained from consuming each subsequent unit tends to decrease. For example, the first slice of pizza brings great satisfaction, but the tenth slice brings very little, if any, additional satisfaction.

2. How is utility maximized?
Utility is maximized when a consumer allocates their budget in such a way that the marginal utility per dollar spent is equal for all goods consumed. For a single good, utility is maximized when the marginal utility of consuming an additional unit becomes zero, assuming the good is free or the price is negligible.

3. Use the below table to Calculate:

a) Complete the above utility schedule.

Step 1: Calculate the missing Marginal Utility (MU) values using the formula $MU_n = TU_n - TU_{n-1}$.
$MU_0 = 0$ (or undefined)
$MU_1 = TU_1 - TU_0 = 10 - 0 = 10$
$MU_2 = TU_2 - TU_