Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 20, Problem 6QP
To determine
The utility maximization.
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If we consume an additional unit of goods when utility is maximum, the utility we get from this additional unit is (positive, negative or zero)? Choose one why?
Would you expect total utility to rise or fall with additional consumption of a good? Why?
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?
Chapter 20 Solutions
Economics (MindTap Course List)
Ch. 20.1 - Prob. 1STCh. 20.1 - Prob. 2STCh. 20.1 - Prob. 3STCh. 20.2 - Prob. 1STCh. 20.2 - Prob. 2STCh. 20.3 - Prob. 1STCh. 20.3 - Prob. 2STCh. 20 - Prob. 1QPCh. 20 - Prob. 2QPCh. 20 - Prob. 3QP
Ch. 20 - Prob. 4QPCh. 20 - Prob. 5QPCh. 20 - Prob. 6QPCh. 20 - Prob. 7QPCh. 20 - Prob. 8QPCh. 20 - Prob. 9QPCh. 20 - Prob. 10QPCh. 20 - Prob. 11QPCh. 20 - Prob. 12QPCh. 20 - Prob. 13QPCh. 20 - Prob. 14QPCh. 20 - Prob. 15QPCh. 20 - Prob. 16QPCh. 20 - Prob. 1WNGCh. 20 - Prob. 2WNGCh. 20 - Prob. 3WNGCh. 20 - Prob. 4WNGCh. 20 - Prob. 5WNGCh. 20 - Prob. 6WNGCh. 20 - Prob. 7WNG
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- Diminishing Marginal Utility. Explain the law of diminishing marginal utility Discuss an instance where you have experienced this. Do consumers continue to purchase something even though its marginal utility is decreasing? Why or why not?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_forwardQ. Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units. a. Is Bridget making the utility-maximizing choice? Why or Why not? b. If not, what should she do instead? Why? Please provide the correct answer. Thank you!arrow_forward
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