Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 10, Problem 6P
To determine
The helpings to consume after payment of $9.95 for meal at your favourite restaurant as it is all-you-can-great night. And to continue or not the consumption after consuming the food of $9.95 worth of satisfaction and what happened to
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How do your total and marginal utility change as you stay at home watching the same TV show (not necessarily the same episode) alone all day?
Suppose it is “All You Can Eat” Night at your favorite restaurant. Once you’ve paid $69.95 for your meal, how do you determine how many helpings to consume? Should you continue eating until your food consumption has yielded $69.95 worth of satisfaction? What happens to the marginal utility from successive helpings as consumption increases?
At what point does a consumer maximize utility?
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Similar questions
- All goods have diminishing marginal utility, but for some goods (or activities), marginal utility falls quickly as you consume more, while for others, marginal utility falls slowly. Can you think of examples of goods that you continue to enjoy a great deal as your consumption increases? Can you think of goods for which your marginal utility decreases rapidly?arrow_forwardHow does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?arrow_forwardIf at a quantity consumed of 1 unit, total utility equals 25 and marginal utility equals 25, and at a quantity consumed of 2 units, total utility is unknown and marginal utility is 20, and at a quantity consumed of 3 units, total utility is 57 and marginal utility is unknown, what is marginal utility of the third unit?arrow_forward
- Give a real-life example (from your daily life) that illustrates total utility rising as marginal utility declines.arrow_forwardPositive marginal utility is when the marginal utility increases the total utility whereas negative marginal utility is when the consumption of an additional unit reduces the amount of the total utility. Is it true or false?arrow_forwardWould you expect total utility to rise or fall with additional consumption of a good? Why?arrow_forward
- Think about a favorite thing you often buy or enjoy. It could be your favorite food, a favorite place to visit, a type of event, or something you make us part of a hobby. As part of this review you will create a chart ( just like the examples of total in marginal utility) showcasing the favorite item. Include the following information: How many you purchase or consume in the course of a day, week, or a month. Marginal utility of additional consumptions The total utility of all consumptions. Let’s assume that the largest utility you get from any one item is 20. Make it as interesting as you can by considering something that is important to you. Fill in the chart. arrow_forwardSuppose you consume 3 pounds of beef and 5 pounds of pork per month. The price of beef is $1.50 per pound , and pork is $2.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, what is the ratio of the marginal utility of beef for the marginal utility of pork?arrow_forwardHow can one's choice of purchases/consumption be infuenced by utility or marginal utility?arrow_forward
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