If Dalene's marginal benefit from consuming another cookie is greater than the price of the cookie, then Dalene will purchase more cookies as her marginal utility will decrease with the additional purchase Dalene will purchase more cookies as her total utility is zero Dalene will not purchase any more cookies as the opportunity cost of purchasing another cookie will be more than its price Dalene will purchase more cookies as her marginal utility will increase with the additional purchase Dalene will not purchase any more cookies as a reallocation of her budget will decrease her utility

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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If Dalene's marginal benefit from consuming another cookie is greater than the price of the
cookie, then
Dalene will purchase more cookies as her marginal utility will decrease with the additional
purchase
Dalene will purchase more cookies as her total utility is zero
Dalene will not purchase any more cookies as the opportunity cost of purchasing another
cookie will be more than its price
Dalene will purchase more cookies as her marginal utility will increase with the additional
purchase
Dalene will not purchase any more cookies as a reallocation of her budget will decrease her
utility
Transcribed Image Text:If Dalene's marginal benefit from consuming another cookie is greater than the price of the cookie, then Dalene will purchase more cookies as her marginal utility will decrease with the additional purchase Dalene will purchase more cookies as her total utility is zero Dalene will not purchase any more cookies as the opportunity cost of purchasing another cookie will be more than its price Dalene will purchase more cookies as her marginal utility will increase with the additional purchase Dalene will not purchase any more cookies as a reallocation of her budget will decrease her utility
Diminishing marginal utility means that:
as one consumes more of a good, other things constant, the total satisfaction obtained from
consuming the good tends to fall.
as one consumes more of a good, other things constant, the additional satisfaction obtained
from each additional unit of the good tends to fall.
as one hires more labor, other things constant, the total amount of output produced begins to
fall.
as one consumes more of a good, other things constant, the extra satisfaction obtained from
each extra good becomes negative.
as one hires more units of labor, other things constant, the marginal product of labor begins
to fall.
Transcribed Image Text:Diminishing marginal utility means that: as one consumes more of a good, other things constant, the total satisfaction obtained from consuming the good tends to fall. as one consumes more of a good, other things constant, the additional satisfaction obtained from each additional unit of the good tends to fall. as one hires more labor, other things constant, the total amount of output produced begins to fall. as one consumes more of a good, other things constant, the extra satisfaction obtained from each extra good becomes negative. as one hires more units of labor, other things constant, the marginal product of labor begins to fall.
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