In the table, the numbers in the U(x) column represent the total utility he gets from consuming that particular number of cookies. The entries U(2) and U(5) indicate that we don’t specifically know what his utility level is if he consumes 2 cookies or 5 cookies, respectively.
What two properties does Clem’s utility function for x exhibit?
Given your answer to (a), what restrictions can you place on U(2)? On U(5)? Be sure to explain your answer.
Suppose that, in addition to cookies, Clem spends the rest of his income on ice cream. As Clem consumes more cookies, what happens to his total utility from ice cream? And, as he consumes more cookies, what happens to his marginal utility from ice cream?
Suppose, contrary to your answers to parts (a)-(c), that Clem feels so bloated by his 7th cookie that he is less happy when he consumes it than when he consumes only 6 cookies. What is true about his total utility after his 7th cookie? Is total utility still a monotonic function? What is true about the marginal utility of the 7th cookie? Is marginal utility still a monotonic function?