The utility-maximizing rule can be stated in words in the following way: A person willmaximize utility when theO total utility per dollar spent is the same for all products.marginal utility is the same for all products.O total utility is the same for all products.Omarginal utility per dollar spent is the same for all products.

Utility refers to the satisfaction consumers derive from consuming a good or service. Marginal…

The utility-maximizing rule can be stated in words in the following way: A person will maximize utility when the O total utility per dollar spent is the same for all products. O marginal utility is the same for all products. O total utility is the same for all products. Omarginal utility per dollar spent is the same for all products.

The utility-maximizing rule can be stated in words in the following way: A person will maximize utility when the O total utility per dollar spent is the same for all products. O marginal utility is the same for all products. O total utility is the same for all products. Omarginal utility per dollar spent is the same for all products.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 6QFR

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Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
Is it possible for total utility to increase while marginal utility diminishes? Explain.
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Total utility O diminished as the quantity of a good increases increases as long as more goods are acquired increases as long as marginal utility increases O increases as long as marginal utility is positive diminishes as consumption of some good rises
Bill gets 100 utils from eating one candy bar per day. He gets 120 utils from eating two candy bars per day. Calculate the marginal utility. O. 220 utils 100 utils 120 utils 20 utils Tamera calculates her utility for two hours of studying each day to be 300 utils. Her total utility for three hours is also 300 utils. Calculate the marginal utility. 300 utils 600 utils O 150 utils no marginal utility
Joe has $55 to spend on apples and oranges. Given the information in the following table, is Joe maximizing utility? Marginal Utility of Last Unit Product Price $0.50 Apples Oranges $0.75 Quantity 50 lbs. 40 lbs. Joe's marginal utility per dollar spent on apples is Joe's marginal utility per dollar spent on oranges is The total amount of his income Joes spends on apples and oranges is Total Utility 1,000 1,200 units of utility per dollar. units of utility per dollar. dollars. 20 30
Q36
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Rohan’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is 200 utils per ounce. If peanuts cost $0.10 per ounce and cashews cost $0.50 per ounce, is Rohan maximizing his total utility from the kinds of nuts? Instructions: Enter your responses as whole numbers. At the current level of peanut consumption, Rohan receives: utils per dollar.At the current level of cashew consumption, Rohan receives: utils per dollar.Therefore, Rohan maximizing his total utility because MUp/Pp is MUc/Pc.
A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 63 and the marginal utility of product Beta is 40. The price of product Alpha is $9, and the price of product Beta is $5. The utility-maximizing rule suggests that, to stay within a given budget constraint, this consumer should Multiple Choice O O O increase consumption of product Beta and increase consumption of product Alpha. make no change in the consumption of Alpha or Beta. increase consumption of product Beta and decrease consumption of product Alpha. increase consumption of product Alpha and decrease consumption of product Beta.