The law of diminishing marginal utility states that Multiple Choice O total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed. beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. price must be lowered to induce firms to supply more of a product. it will take larger and larger amounts of resources beyond some point to produce successive units of a product.

The law of diminishing marginal utility states that Multiple Choice O total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed. beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. price must be lowered to induce firms to supply more of a product. it will take larger and larger amounts of resources beyond some point to produce successive units of a product.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 7 The law of diminishing marginal utility states that: Utility derived from the additional unit of the good consumed falls as the consumption of the good increases. Total Utility derived from consumption of a good falls as consumption increases. None of the suggested options. Ratio of the MU to P for luxuries is lower than that for necessities. Ratio of MU to P will be the same for all goods
s) Using the indifference curves, a budget line and a price change, show how we can derive an individual's demand curve for a product..
The marginal utility of additional units of a product tends to: Go up Go down Remain constant There is no marginal utility beyond the first unit.
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How can business establishments take advantage of the law of diminishing marginal utility?
Q#9
Optimal consumption refers to Multiple Choice the mix of products that maximizes total utility for the limited amount of income consumers have to spend. the total number of products that maximizes total utility for consumers. the maximum total utility a consumer receives by the consumption of one more item. the amount demanded that will create the strongest economy.
The graph given below indicates Marshall's marginal utility for two products, A and B. Marginal utility 12 10 8 2 0 2 4 6 Quantity per period 8 Product A Product B 10 W
What economic principle suggests that individuals will continue to consume more of a good or service until the marginal benefit equals the marginal cost? A) Law of Demand B) Law of Supply C) Law of Diminishing Marginal Utility D) Equilibrium Price
From the consumer’s viewpoint, which of the following is to get the most total satisfaction or value from the least amount of money spent given the prices of the goods or services faced and the income level of the consumer? Utility maximization Resource maximization Product maximization Profit maximization