Explain the relation between the total utility and the marginal utility .

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Answer 1

Question

Chapter 20, Problem 1QP

To determine

Explain the relation between the total utility and the marginal utility.

Expert Solution & Answer

Explanation of Solution

The total utility is the overall satisfaction accrued by a consumer from all the units of a commodity, whereas the marginal utility is the additional utility accrued from consuming an additional unit. Therefore, as total utility increases, the marginal utility will decline. For example, Person E accrued $2 of utility from eating one banana and $1 of utility from eating the second banana. Hence, as the quantity increases from 1 banana to 2 bananas, the total utility increases from $2 to $3 (2+1), where the marginal utility is $1 (3-2). Hence, as the total utility rises, the marginal utility declines.

Economics Concept Introduction

Total utility: The total utility is defined as the overall satisfaction that a consumer derives from consuming all units of a good or service over a given time period.

Marginal utility: Marginal utility is the additional utility derived from consuming one more unit of a good or service.

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Answer 2

Question

Chapter 20, Problem 1QP

To determine

Explain the relation between the total utility and the marginal utility.

Expert Solution & Answer

Explanation of Solution

The total utility is the overall satisfaction accrued by a consumer from all the units of a commodity, whereas the marginal utility is the additional utility accrued from consuming an additional unit. Therefore, as total utility increases, the marginal utility will decline. For example, Person E accrued $2 of utility from eating one banana and $1 of utility from eating the second banana. Hence, as the quantity increases from 1 banana to 2 bananas, the total utility increases from $2 to $3 (2+1), where the marginal utility is $1 (3-2). Hence, as the total utility rises, the marginal utility declines.

Economics Concept Introduction

Total utility: The total utility is defined as the overall satisfaction that a consumer derives from consuming all units of a good or service over a given time period.

Marginal utility: Marginal utility is the additional utility derived from consuming one more unit of a good or service.

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Answer 3

Question

Chapter 20, Problem 1QP

To determine

Explain the relation between the total utility and the marginal utility.

Expert Solution & Answer

Explanation of Solution

The total utility is the overall satisfaction accrued by a consumer from all the units of a commodity, whereas the marginal utility is the additional utility accrued from consuming an additional unit. Therefore, as total utility increases, the marginal utility will decline. For example, Person E accrued $2 of utility from eating one banana and $1 of utility from eating the second banana. Hence, as the quantity increases from 1 banana to 2 bananas, the total utility increases from $2 to $3 (2+1), where the marginal utility is $1 (3-2). Hence, as the total utility rises, the marginal utility declines.

Economics Concept Introduction

Total utility: The total utility is defined as the overall satisfaction that a consumer derives from consuming all units of a good or service over a given time period.

Marginal utility: Marginal utility is the additional utility derived from consuming one more unit of a good or service.

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Answer 4

Question

Chapter 20, Problem 1QP

To determine

Explain the relation between the total utility and the marginal utility.

Expert Solution & Answer

Explanation of Solution

The total utility is the overall satisfaction accrued by a consumer from all the units of a commodity, whereas the marginal utility is the additional utility accrued from consuming an additional unit. Therefore, as total utility increases, the marginal utility will decline. For example, Person E accrued $2 of utility from eating one banana and $1 of utility from eating the second banana. Hence, as the quantity increases from 1 banana to 2 bananas, the total utility increases from $2 to $3 (2+1), where the marginal utility is $1 (3-2). Hence, as the total utility rises, the marginal utility declines.

Economics Concept Introduction

Total utility: The total utility is defined as the overall satisfaction that a consumer derives from consuming all units of a good or service over a given time period.

Marginal utility: Marginal utility is the additional utility derived from consuming one more unit of a good or service.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 20, Problem 1QP

To determine

Explain the relation between the total utility and the marginal utility.

Expert Solution & Answer

Explanation of Solution

The total utility is the overall satisfaction accrued by a consumer from all the units of a commodity, whereas the marginal utility is the additional utility accrued from consuming an additional unit. Therefore, as total utility increases, the marginal utility will decline. For example, Person E accrued $2 of utility from eating one banana and $1 of utility from eating the second banana. Hence, as the quantity increases from 1 banana to 2 bananas, the total utility increases from $2 to $3 (2+1), where the marginal utility is $1 (3-2). Hence, as the total utility rises, the marginal utility declines.

Economics Concept Introduction

Total utility: The total utility is defined as the overall satisfaction that a consumer derives from consuming all units of a good or service over a given time period.

Marginal utility: Marginal utility is the additional utility derived from consuming one more unit of a good or service.

Answer 6

Chapter 20, Problem 1QP

To determine

Explain the relation between the total utility and the marginal utility.

Expert Solution & Answer

Explanation of Solution

The total utility is the overall satisfaction accrued by a consumer from all the units of a commodity, whereas the marginal utility is the additional utility accrued from consuming an additional unit. Therefore, as total utility increases, the marginal utility will decline. For example, Person E accrued $2 of utility from eating one banana and $1 of utility from eating the second banana. Hence, as the quantity increases from 1 banana to 2 bananas, the total utility increases from $2 to $3 (2+1), where the marginal utility is $1 (3-2). Hence, as the total utility rises, the marginal utility declines.

Economics Concept Introduction

Total utility: The total utility is defined as the overall satisfaction that a consumer derives from consuming all units of a good or service over a given time period.

Marginal utility: Marginal utility is the additional utility derived from consuming one more unit of a good or service.

Answer 7

Chapter 20, Problem 1QP

To determine

Explain the relation between the total utility and the marginal utility.

Answer 8

Expert Solution & Answer

Explanation of Solution

The total utility is the overall satisfaction accrued by a consumer from all the units of a commodity, whereas the marginal utility is the additional utility accrued from consuming an additional unit. Therefore, as total utility increases, the marginal utility will decline. For example, Person E accrued $2 of utility from eating one banana and $1 of utility from eating the second banana. Hence, as the quantity increases from 1 banana to 2 bananas, the total utility increases from $2 to $3 (2+1), where the marginal utility is $1 (3-2). Hence, as the total utility rises, the marginal utility declines.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Total utility: The total utility is defined as the overall satisfaction that a consumer derives from consuming all units of a good or service over a given time period.

Marginal utility: Marginal utility is the additional utility derived from consuming one more unit of a good or service.

Answer 12

Ch. 20.1 - Prob. 1ST Ch. 20.1 - Prob. 2ST Ch. 20.1 - Prob. 3ST Ch. 20.2 - Prob. 1ST Ch. 20.2 - Prob. 2ST Ch. 20.3 - Prob. 1ST Ch. 20.3 - Prob. 2ST Ch. 20 - Prob. 1QP Ch. 20 - Prob. 2QP Ch. 20 - Prob. 3QP

Explain the relation between the total utility and the marginal utility .

Solution Summary: The author explains the relation between the total utility and the marginal utility. Total utility is the overall satisfaction accrued by a consumer from all units of the commodity.

Explain the relation between the total utility and the marginal utility.

Explanation of Solution

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