Question

Classify each of the statements as true or false True False Answer Bank Marginal utility is always positive. Numerical utility values are relatively easy to calculate. Diminishing marginal utility means that consumption of an additional unit decreases utility. Marginal utility is the extra satisfaction experienced by one additional unit of consumption Marginal utility is always negative. Utility is a measure of the satisfaction people receive from their choices If you eat a slice of pizza that gives you food poisoning. your utility will likely decrease.

Answer 1

Answer:

True	False
1. Marginal utility is the extra satisfaction experienced by one additional unit of consumption 2. Utility is a measure of the satisfaction people receive from their choices. 3. If you eat a slice of pizza that gives you food poisoning, your utility will likely decrease.	1. Marginal utility is always positive. 2. Numerical utility values are relatively easy to calculate 3. Diminishing marginal utility means that consumption of an additional unit decreases utility. 4. Marginal utility is always negative.

Explanation:

For True:

1. Marginal utility is the extra satisfaction experienced by one additional unit of consumption

Marginal utility refers to extra satisfaction experienced by one additional unit of consumption

2. Utility is a measure of the satisfaction people receive from their choices.

Utility refers to the satisfaction people receive from their choices.

3. If you eat a slice of pizza that gives you food poisoning, your utility will likely decrease.

By bringing the total utility down marginal utility derived from consuming pizza that gives you food poisoning.

For False:

1. Marginal utility is always positive.

Marginal Utility is not always positive value. When total utility increases then only marginal utility has positive values.

2. Numerical utility values are relatively easy to calculate

Quantification of satisfaction is tough task.

3. Diminishing marginal utility means that consumption of an additional unit decreases utility.

Diminishing marginal utility means that marginal utility decreases with each additional unit

4. Marginal utility is always negative.

Marginal Utility is not always negative value. When total utility decreases then only marginal utility has negative values.