Explain why the convexity of the indifference curve is a different concept from diminishing marginal utility.
Explain why the convexity of the indifference curve is a different concept from diminishing marginal utility.
Homework Answers
The indifference curve shows the different combinations of two goods that provide same level of utility to the consumer. An indifference curve is convex to the origin because of the diminishing marginal rate of substitution. The marginal rate of substitution is the rate at which one good can be substituted for the other good. The marginal rate of substitution is diminishing because when the consumption increases then more units of a good are needed to be sacrificed in order to obtain na additional unit of the other good. So, that is why the indifference curves are convex to the origin. On the other hand, the diminishing marginal utility states that as the consumption of one good increases, the utility obtained by consumption of each additional unit keep in decreasing. So, the diminishing marginal utility and the convexity of indifference curves are two different concepts.
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Explain why the convexity of the indifference curve is a
different concept from diminishing marginal utility.
2. Show that each of the following utility functions has a diminishing MRS. Do they exhibit...
2. Show that each of the following utility functions has a diminishing MRS. Do they exhibit constant, increasing, or decreasing marginal utility? Is the shape of the marginal utility function an indicator of the convexity of indifference curve? a. (2) U(X,Y) = XY b. (2) U(X,Y) = x2y2 c. (2) U(X,Y) = In X + In Y
A. Define utility as an economist would. B. State and explain the Law of Diminishing Marginal...
A. Define utility as an economist would. B. State and explain the Law of Diminishing Marginal Utility. C. How is the Law of Diminishing Marginal Utility reflected in the demand curve?
if an individuals indifference curve map does not obey the assumption of a diminishing MRS, then...
if an individuals indifference curve map does not obey the assumption of a diminishing MRS, then tangencies of indifference curves to the budget constraint may not be points of utility maximization. True or false. Explain very Brief
Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.
Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.
QUESTION 13 The concept of diminishing marginal utility states that as an individual consumes addicional units...
QUESTION 13 The concept of diminishing marginal utility states that as an individual consumes addicional units of a commodity the amount of ublity attained from each additional unit increases, other things remaining equal O True ○ False
1)Explain the concept of utility, total utility, and marginal utility with respect to marijuana? 2) derive...
1)Explain the concept of utility, total utility, and marginal utility with respect to marijuana? 2) derive the consumers demand curve for marijuana using utility
Marginal rate of substitution is _____ a. Increasing because consumer’s indifference curve is bowed outward b....
Marginal rate of substitution is _____ a. Increasing because consumer’s indifference curve is bowed outward b. Diminishing because consumers prefers variety and prefer a balanced consumption c. Increasing because consumers can easily find complementary goods d. Decreasing because consumer’s utility curve is linear
and why? 11) The principle of diminishing marginal utility means that as you eat fewer slices...
and why?
11) The principle of diminishing marginal utility means that as you eat fewer slices of pizza, your total utility from pizza will and your marginal utility from each additional slice of pizza will A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
Carefully explain the principle of diminishing marginal utility using a relevant example.
Carefully explain the principle of diminishing marginal utility using a relevant example.
The topic of this discussion is on an incredibly important concept in utility maximization: the law...
The topic of this discussion is on an incredibly important concept in utility maximization: the law of diminishing marginal utility. This term is a reason why the demand curve itself is downward-sloping. Specifically answer this prompt: Can you think of any examples of goods or services where the law of diminishing marginal utility does not apply? If the law of diminishing marginal utility does apply to certain goods or services, how could a business change pricing to take advantage of...
2. Show that each of the following utility functions has a diminishing MRS. Do they exhibit constant, increasing, or decreasing marginal utility? Is the shape of the marginal utility function an indicator of the convexity of indifference curve? a. (2) U(X,Y) = XY b. (2) U(X,Y) = x2y2 c. (2) U(X,Y) = In X + In Y
QUESTION 13 The concept of diminishing marginal utility states that as an individual consumes addicional units of a commodity the amount of ublity attained from each additional unit increases, other things remaining equal O True ○ False
1)Explain the concept of utility, total utility, and marginal utility with respect to marijuana? 2) derive the consumers demand curve for marijuana using utility
and why?
11) The principle of diminishing marginal utility means that as you eat fewer slices of pizza, your total utility from pizza will and your marginal utility from each additional slice of pizza will A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
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