Homework Answers
True. It is possible to consume so much of a good that it turns out into a bad good and the marginal utility becomes negative. This is according to the law of Diminishing marginal utility, which suggests that as a person increases the consumption of one good, after a certain point, the total utility decreases and the marginal uility becomes negative.
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True or False: It is possible to consume so much of a good that it turns...
curve to the right. True or false? Explain. 4. The budget line shows all possible combinations...
curve to the right. True or false? Explain. 4. The budget line shows all possible combinations of two goods that yield the same level of utility to the consumer. True or false? Explain. 5. In ordinal utility, consumer equilibrium occurs at the point where: MRSxy Py/Px. (Assume good Y is on the Y axis and good X is on the X axis.) True or false? Explain. 6. Ordinal Utility (Indifference Curves & Budget Constraint Lines) has been said to have...
True or False: If the additional satisfaction derived from consuming a good rises with every additional...
True or False: If the additional satisfaction derived from consuming a good rises with every additional unit consumed, then we can say that the marginal utility of the good is increasing.
Classify each of the statements as true or false True False Answer Bank Marginal utility is...
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....
ue or false. MPC+ MPS 1 o True O False Correct. Marginal propensity to consume plus...
ue or false. MPC+ MPS 1 o True O False Correct. Marginal propensity to consume plus marginal propensity to save equals 1. of aggregate expenditure is 5 MPcio 8 when the MPC is.8 and there is an increase in investment spending of $100,000. x Incorrect. First determine the expenditure multiplier, then multiply that by $100,000 to obtain the correct answer True or false. If people save more of their income, the expenditure multiplier will not decrease and aggregate expenditures will...
Q5. Suppose that marginal utility of Good X = 100, the price X is $10 per...
Q5. Suppose that marginal
utility of Good X = 100, the price X is $10 per unit, and the price
of Y is $5 per unit. Assuming that the consumer is in equilibrium
and is consuming both X and Y, what must the marginal utility of Y
be?
P12. The following tables
illustrate Eileen’s utilities from watching first-run movies in a
theater and from renting movies from a video store. Suppose that
she has a monthly movie budget of $36,...
Indicate whether the following statements are True or False a)Total utility is the benefit received from...
Indicate whether the following statements are True or False a)Total utility is the benefit received from consuming an extra unit of a good b)According to the principle of diminishing marginal utility, as an individual consumes more and more of a good or service ,the total utility increases while the marginal utility decreases c)Tom's marginal utility from a Sobe exceeds his marginal utility of crackers.Therefore , his total utility of Sobe must exceed his total utility of crackers d)Marginal utility diminishes...
Please show as much work and explanation as possible, thank you so much! 7. Which ones of the followings are true in per...
Please show as much work and explanation as
possible, thank you so much!
7. Which ones of the followings are true in perfectly competitive markets? (a) The industry demand curve is flat. (b) Firms' marginal revenue is constant as quantity varies. (c) From a firm's perspective, its price elasticity of demand is zero. 8. Which ones of the followings are true about firms’ short-run behavior in a perfectly competitive market? (a) Firms shut down whenever profit is negative. (b) Firms...
Is this statement true or false In a model with uncertainty, the propensity to consume out...
Is this statement true or false In a model with uncertainty, the propensity to consume out of changes in permanent income is higher than the propensity to consume out of a temporary change in income
A good salesperson perceives objections as a hindrance to the purchase decision. True False A salesperson’s...
A good salesperson perceives objections as a hindrance to the purchase decision. True False A salesperson’s responsibilities usually end with making the sale and placing the order. True False With regard to social media, the interaction between producer and consumer becomes less about entertaining and more about listening, influencing, and engaging. True False
Please supply as much explanation as possible, thank you so much! 4. Which of the following...
Please supply as much
explanation as possible, thank you so much!
4. Which of the following statements concerning Marginal Revenue are true? (a) Marginal Revenue > Price for any firm that faces a downward sloping demand curve (b) Marginal Revenue = 0 when the price elasticity of demand is one. (c) Marginal Revenue = Marginal Cost when profits are maximized. 5. Which ones of these statements concerning firms' short-run behavior is true? (a) If the firm makes negative profit, the...
curve to the right. True or false? Explain. 4. The budget line shows all possible combinations of two goods that yield the same level of utility to the consumer. True or false? Explain. 5. In ordinal utility, consumer equilibrium occurs at the point where: MRSxy Py/Px. (Assume good Y is on the Y axis and good X is on the X axis.) True or false? Explain. 6. Ordinal Utility (Indifference Curves & Budget Constraint Lines) has been said to have...
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....
ue or false. MPC+ MPS 1 o True O False Correct. Marginal propensity to consume plus marginal propensity to save equals 1. of aggregate expenditure is 5 MPcio 8 when the MPC is.8 and there is an increase in investment spending of $100,000. x Incorrect. First determine the expenditure multiplier, then multiply that by $100,000 to obtain the correct answer True or false. If people save more of their income, the expenditure multiplier will not decrease and aggregate expenditures will...
Q5. Suppose that marginal
utility of Good X = 100, the price X is $10 per unit, and the price
of Y is $5 per unit. Assuming that the consumer is in equilibrium
and is consuming both X and Y, what must the marginal utility of Y
be?
P12. The following tables
illustrate Eileen’s utilities from watching first-run movies in a
theater and from renting movies from a video store. Suppose that
she has a monthly movie budget of $36,...
Please show as much work and explanation as
possible, thank you so much!
7. Which ones of the followings are true in perfectly competitive markets? (a) The industry demand curve is flat. (b) Firms' marginal revenue is constant as quantity varies. (c) From a firm's perspective, its price elasticity of demand is zero. 8. Which ones of the followings are true about firms’ short-run behavior in a perfectly competitive market? (a) Firms shut down whenever profit is negative. (b) Firms...
Please supply as much
explanation as possible, thank you so much!
4. Which of the following statements concerning Marginal Revenue are true? (a) Marginal Revenue > Price for any firm that faces a downward sloping demand curve (b) Marginal Revenue = 0 when the price elasticity of demand is one. (c) Marginal Revenue = Marginal Cost when profits are maximized. 5. Which ones of these statements concerning firms' short-run behavior is true? (a) If the firm makes negative profit, the...
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