Answered: Shiela bought a new phone and paid…

Shiela bought a new phone and paid $10,000. This means that her marginal utility from this new phone is $10,000 or higher. Do you agree with this statement? Explain your answer briefly.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section: Chapter Questions

Problem 2TY

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Question

Shiela bought a new phone and paid $10,000. This means that her marginal utility from this new phone is $10,000 or higher. Do you agree with this statement? Explain your answer briefly.

Definition Definition Satisfaction derived from the consumption of an additional unit of any commodity.

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