The table below shows the total utility (TUTUTU), measured in utils, that a consumer derives from consuming different weekly quantities (QQQ) of a specific good:
| Quantity (QQQ) | Total Utility (TUTUTU) (utils) |
|---|---|
| 0 | 0 |
| 1 | 28 |
| 2 | 50 |
| 3 | 66 |
| 4 | 76 |
| 5 | 82 |
| 6 | 84 |
| 7 | 84 |
| 8 | 78 |
Based on this data and the theory of consumer behaviour, which of the following statements is correct?
The consumer experiences diminishing marginal utility only after consuming the 5th unit.
If the market price of the good is equivalent to 8 utils, a rational consumer seeking to maximise consumer surplus will purchase exactly 4 units.
Total utility is maximised at 7 units because this is the point where marginal utility is also maximised.
At 8 units of consumption, the marginal utility is positive but total utility is falling.
