ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 7.1, Problem 3QQ
To determine
Marginal utility .
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Students have asked these similar questions
Which answer is correct and why?
When marginal utility is decreasing but positive, total utility is
a increasing at a decreasing rate
b increasing at an increasing rate
c decreasing at a decreasing rate
d decreasing at an increasing rate
Which statement BEST describes the principle of diminishing marginal utility? As an individual consumes more of a good:
Select one:
a. the marginal utility will eventually become negative.
b. the total utility obtained will eventually become negative.
c. the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good.
d. the total utility obtained will eventually fall.
Chapter 7 Solutions
ECONOMICS W/CONNECT+20 >C<
Ch. 7.1 - Prob. 1QQCh. 7.1 - Prob. 2QQCh. 7.1 - Prob. 3QQCh. 7.1 - Prob. 4QQCh. 7.A - Prob. 1ADQCh. 7.A - Prob. 2ADQCh. 7.A - Prob. 3ADQCh. 7.A - Prob. 1ARQCh. 7.A - Prob. 2ARQCh. 7.A - Prob. 1AP
Ch. 7.A - Prob. 2APCh. 7.A - Prob. 3APCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7P
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Similar questions
- Is it possible for total utility to increase while marginal utility diminishes? Explain.arrow_forwardAccording to the law of diminishing marginal utility, what happens as a consumer consumes more units of a good? A. Total utility increases at a decreasing rate.B. Marginal utility increases at a decreasing rate.C. Total utility decreases at an increasing rate.D. Marginal utility decreases at an increasing rate.arrow_forwardU(x, y) = xayb A consumer maximises utility subject to a budget constraint M = Pxx+Pyy Where px is the price of good x, py is the price of good y and M is the budget available. a. Derive an expression for the marginal utility of x. Under what condition is the marginal utility diminishing. b. Derive an expression for the marginal utility of y. Under what condition is the marginal utility diminishing.arrow_forward
- Quantity X TUx MUX MUX/Px Quantity Y TUy MUY MUy/Py 1 75 1 96 135 60 B 72 185 50 3 234 66 4 230 45 A 4 294 60 270 5 348 54 2.arrow_forward27. If you have Marginal utility of 2 with a Total utility equals to 56, then when marginal utility is reduce to zero while Total utility remains the same, what does it mean? a. at 56 utils of MU equals zero, utility begins to gain momentum b. at 56 utils of MU equals zero, utility begins to diminish c. at 56 utils of MU equals zero. utility begins to increase d. at 56 utils of MU equals zero, utility begins to upswingarrow_forwardExplain the law of marginal utility. What is its importance in understanding the preference of consumer consumption.arrow_forward
- Total utility OA. falls as long as marginal utility is negative. OB. is at a maximum when marginal utility is zero. OC. rises as long as marginal utility is positive. OD. All of the above.arrow_forwardWhen does marginal utility become 1) Negative 2) zero Explainarrow_forward#10. Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy bars and ice cream until the a. marginal utility of each decreases. b. marginal utility of each becomes negative. c. total utility of each becomes negative. d. marginal utility of candy bars and ice cream bars is equal. e. total utility of candy bars and ice cream bars is equal.arrow_forward
- 26. If you have Marginal utility of 2 with a Total utility equals to 56, then when marginal utility is reduce to zero while Total utility remains the same, what does it mean? a. satisfaction diminishes b. TU is maximum c. Quantity diminishes d. Marginal utility is maximumarrow_forwardexplainarrow_forwardThe amount by which total utility increases (or decreases) when an additional unit of a good is consumed is called utility. average marginal maximum diminishing marginal O increasing marginalarrow_forward
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