1) According to the diagram below, what is the marginal utility for the 3rd unit?
2) Does the diagram below properly depict the “Law of diminishing marginal utility?”
a. Yes, because 10 is less than 15
b. Yes, because it’s increasing but leveling off
c. Depends on which good this represents
d. No, because Total Utility keeps increasing
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1) According to the diagram below, what is the marginal utility
for the 3rd unit?
2)...
Recall the text’s definition of diminishing marginal utility: “the common pattern that each marginal unit of...
Recall the text’s definition of diminishing marginal utility: “the common pattern that each marginal unit of a good consumed provides less of an addition to utility than the previous unit.” The reason for this behavior is because of biology. Our body sends our brains a signal once too much of a good or service has been consumed. This prevents a person from literally eating until they explode. In your own experience, share two times instances where the law of diminishing...
a. Which item below most accurately describes increasing marginal utility? An example of increasing marginal utility...
a. Which item below most accurately describes increasing marginal utility? An example of increasing marginal utility is Fricano's, a local sandwich shop, which offers a punch card that rewards customers for frequent business by providing the 10th sandwich purchased for free. Miles, Who is two years old and watches Sesame Street every morning. He usually finds the first 30 minutes of the show very entertaining, but loses interest quickly after that point stinky tofu, a Chinese speciality, which typically requires...
1. Which of the following statements best describes the law of diminishing marginal utility? Consumers will...
1. Which of the following statements best describes the law of diminishing marginal utility? Consumers will purchase more of a good at a lower price, ceteris paribus. Consumers maximize total utility when the marginal utility per dollar spent is equal for all goods consumed. Each successive unit of a good consumed yields less additional utility. Consumers behave rationally when the price of a good equals the marginal utility of the good. 2. Assume the price elasticity of demand for Nike...
1- According to the principle of rational choice, if there is diminishing marginal utility: A) and...
1- According to the principle of rational choice, if there is diminishing marginal utility: A) and the price received for supplying a good goes up, you supply less of that good. B) and the price received for supplying a good goes up, you supply more of that good. C) the decision producers face about how much to supply is not affected. D) after a certain point, even if the price goes up, you don't supply more of that good.
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1)...
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1) the difference between total and marginal utility. C) average utility. D) total utility. 34) The law of diminishing marginal utility states that A) beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. B) price must be lowered to induce firms to supply more of a product C) it will take larger and larger amounts of...
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,...
QUESTION 10 Quantity Consumed Total Utility 12 Marginal Utility 12 1 2 8 3 26 4...
QUESTION 10 Quantity Consumed Total Utility 12 Marginal Utility 12 1 2 8 3 26 4 4 Given the above data, what is the total utility of the 2nd unit? 8 12 20 0 26 QUESTION 11 Total Utility 12 Quantity Consumed 1 2 3 4 Marginal Utility 12 8 26 Given the above data, what is the marginal utility of the 3rd unit? 6 e 32 30
2 . 8) Diminishing marginal utility means that A) marginal utility decreases as consumption decreases. B)...
2 . 8) Diminishing marginal utility means that A) marginal utility decreases as consumption decreases. B) marginal utility increases as consumption increases. C) marginal utility decreases as consumption increases. D) total utility decreases as marginal utility decreases E) total utility decreases as marginal utility increases. 9) Which of the following is the best example of how the invisible hands works? A) The government places restrictions on prices of products, B) The government decides to force firms to produce more electricity....
1) If a consumer is currently maximizing her satisfaction, what will happen to the marginal utility...
1) If a consumer is currently maximizing her satisfaction, what will happen to the marginal utility of a good when its price increases? The marginal utility will____ a. Increase, because the consumer will decrease her consumption of the good b. Decrease, because the consumer will increase her consumption of the good c. Decrease, because the consumer will decrease her consumption of the good d. Increase, because the consumer will increase her consumption of the good 2) the fixed cost of...
For questions 1 to 20 indicate whether each of the statements is TRUE or FALSE. (20...
For questions 1 to 20 indicate whether each of the statements is TRUE or FALSE. (20 marks) 1. A demand curve is downward sloping because as the price of a good falls, consumers will substitute some other good for that good whose price has fallen. 2. An improvement in the technology for producing Gari will shift the supply curve for Gari to the left. 3. The minimum wage is an example ofa price floor. 4. Ifthe price ofa good goes...
a. Which item below most accurately describes increasing marginal utility? An example of increasing marginal utility is Fricano's, a local sandwich shop, which offers a punch card that rewards customers for frequent business by providing the 10th sandwich purchased for free. Miles, Who is two years old and watches Sesame Street every morning. He usually finds the first 30 minutes of the show very entertaining, but loses interest quickly after that point stinky tofu, a Chinese speciality, which typically requires...
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1) the difference between total and marginal utility. C) average utility. D) total utility. 34) The law of diminishing marginal utility states that A) beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. B) price must be lowered to induce firms to supply more of a product C) it will take larger and larger amounts of...
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,...
QUESTION 10 Quantity Consumed Total Utility 12 Marginal Utility 12 1 2 8 3 26 4 4 Given the above data, what is the total utility of the 2nd unit? 8 12 20 0 26 QUESTION 11 Total Utility 12 Quantity Consumed 1 2 3 4 Marginal Utility 12 8 26 Given the above data, what is the marginal utility of the 3rd unit? 6 e 32 30
2 . 8) Diminishing marginal utility means that A) marginal utility decreases as consumption decreases. B) marginal utility increases as consumption increases. C) marginal utility decreases as consumption increases. D) total utility decreases as marginal utility decreases E) total utility decreases as marginal utility increases. 9) Which of the following is the best example of how the invisible hands works? A) The government places restrictions on prices of products, B) The government decides to force firms to produce more electricity....
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