Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 1, Problem 6CQ
To determine
Difference between self-interest, selfish, and greedy nature of people.
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Chapter 1 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
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- please explain the theory of marginal utility. Please include a particular product or service you use and how marginal utility applies. Search entries or author Don't copy from privious answerarrow_forwardIf 2 tacos and 3 drinks cost $12, and 3 tacos and 2 drinks cost $13, how much does a taco cost?arrow_forwardWhat does the point on a budget line indicate in terms of prices?arrow_forward
- The law of diminishing marginal utility states that?arrow_forwardJanice really likes potatoes. Potatoes cost $1.10 per pound, and she has $6.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? pound(s) of potatoes b. What if she only had $3.00 to spend? pound(s) of potatoesarrow_forwardThe concept of diminishing marginal utility with the help of necessary tables and graphs taking a suitable example.arrow_forward
- Who introduced utilityarrow_forwardMarginal Analysis 5. Suppose you choose to eat 3 slices of pizza for dinner. An economist who is using marginal thinking to analyze your decision would be most interested in the answer to which of the following questions? A) Why did you eat 3 slices of pizza instead of 4 B) Why did you eat more than 1 slice of pizza? C) Why didn't you eat 5 slices of pizza? D) Why did you have pizza instead of a salad? 6. The additional benefits you would get if you had taken 1 more credit this semester is the: A total beneit of college credits B) marginal cest of a college credit total cost of college credits D) marginal benefit of a college credit/ 7. Which of these gives the best definition of "the margin" as economists use the term? A The value of the next best choice that you give up when you make a decision E The limit to an individual's ability to do complex mathematical calculations C) The dividing line between an action that is taken and an action that is not taker ) The difference between the…arrow_forwardWith the aid of an appropriate diagram explain individual utility and social choicesarrow_forward
- Briefly discuss four disadvantages of using Cost-benefit analysis to measure utility.arrow_forwardFor Unit 4 Learning Journal, you will use the marginal utility formula to choose between two products. Catherine is having dinner at the Yellow Restaurant. She wants desert after eating her entree. She is trying to decide between a cookie or a slice of pie. The cost of a cookie is $5 and the cost of a slice of pie is $8. Refer to the Unit 4 Learning Journal Marginal Utility spreadsheet Compute the marginal utility for cookie and slice of pie Compute the marginal utility per dollar What is the utility maximizing choice for a cookie and slice of pie? Explain what the utility maximizing choice means. Discuss how you could use marginal utility to make consumer choicesarrow_forwardwhat is the principle of utility?arrow_forward
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