An old nursery rhyme tells us : Jack Sprat would eat no fat; his wife would eat no lean. This tells us that utility is: objective the same for everyone unchanging subjective

Q: Define Economic utility

A: Economics studies the behavior of consumers and producers and tries to understand the factors which…

Q: What are the conditions for utility maximization?

A: Utility refers to the satisfaction that a consumer gets from consumption of a good or service. It…

Q: Total utility is 0 when marginal utility is 0 True/False

A: # Utility is a concept which helps us calculate the satisfaction a consumer gets when a good or…

Q: he insists on consuming exactly one sweet tea for every two burgers that he eats. Then, using an…

A: An indifference bend tells a blend of two products that offer equivalent fulfillment and utility to…

Q: Explain one difference and one example between the Cardinal utility and ordinal utility!

A: Cardinal utility is a Marshallian concept used along with an ordinal utility to gauge the…

Q: At a certain pizza shop, a single customer could order a pizza dine-in for $12 but he could get a…

A:

Q: If something has negative marginal utility, what happens to your total utilitywhen you consume it?

A: Marginal utility is defined as the utility gains after one more extra unit of consumption. It means…

Q: Explain how an optimal decision of a consumer can be achieved by using utility-maximizing theory and…

A: In a market, consumer satisfaction can be computed using two types of economic approaches that are…

Q: The law of diminishing marginal utility is consistent with the fact that people trade. Do you agree…

A: In economics, various laws and theories are developed to understand the market behavior in different…

Q: An indifference curve is the locus of points of combination of goods which gives equal satisfaction…

A: Consumers Equilibrium: Consumer equilibrium is the situation of maximum satisfaction. When the…

Q: What is the difference between a positive and anormative statement? Give an example of each.

A: Economic policies are a combination of positive and normative statements. A normative statement…

Q: What is meant by Utility ?

A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms…

Q: Distinguish between cardinal and ordinal utility

A:

Q: How do we measure utility? Explain

A: The utility is the want satisfying power of the commodity. The utility would result in the sense of…

Q: What does the assumption that More Is Better implies about Marginal Utility? Explain?

A: MU(marginal utility) is the change in TU(total utility) when an additional unit of good is consumed.…

Q: Total utility is maximized when marginal utility becomes (positive, zero, negative)

A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…

Q: How do indifference curves represent the consumer's preferences?

A: The indifference curve is a mathematical representation of the combination of all the consumption…

Q: What is the axiom of consumer choice that implies that consumers spend all their income in order to…

A: The maximum utility is maximized where the last $ spent on each goods provide exactly same marginal…

Q: 8)  When Marginal Utility = 0, Total Utility is A) Maximum B) Constant C) Minimum D) None of the…

A: Total Utility:-  The overall amount of contentment achieved by a consumer as a result of consuming a…

Q: When marginal utility is decreasing but positive, total utility is a increasing at a decreasing…

A: Marginal utility is the additional utility that is derived by consuming an additional unit of the…

Q: When marginal utility is positive, total utility____

A: Marginal utility is the additional utility derived from having an additional unit of commodity.…

Q: What are the two conditions that are met if a consumer is maximizing utility?

A: A consumer is said to be in a state of equilibrium when he or she maximizes his utility, given…

Q: True/ false Describe Since a greater utility number indicates that a consumer is better off,…

A: Utility: Utility is used to model value or value. Its use has evolved significantly over time. The…

Q: Suppose you are a beta-delta discounter with beta=1/2. If, on Thursday, you are indifferent between…

A: In economics, utility is a term that describes the total satisfaction gained from consuming a…

Q: What does revealed preference theory based on? a) Utility and demand b) Observed consumer behavior…

A: Revealed preference: Revealed preference is a theory relating to somebody's consumption patterns,…

Q: The marginal utility of the 8th can of beer is

A: In economics, marginal utility refers to the additional satisfaction or benefit (utility) a buyer…

Q: A consumer has a Cobb-Douglas utility function and consumes two goods x and y. If the price of good…

A: Introduction: The utility function in economics assesses a consumer's well-being or pleasure as a…

Q: Kirk enjoys going to ballparks and watching baseball. Last week, Kirk paid $40 to purchase a ticket…

A: People buy goods and services because of their ability to satisfy human want. That property of a…

Q: What are some key points about the utility-maximization model

A: Consume equilibrium is a state where consumer gets maximum satisfaction. Individuals and businesses…

Q: Define, and then explain in your own words what the concept of Marginal Utility is:

A: Marginal utility is that utility which consumer get an additional  satisfaction from buying or…

Q: If the price of restaurant meals is overall higher in big cities then you might expect young people…

A: Yes, people do show their preferences where they choose to live.

Q: Consumer value can be determined by how consumer utility compares between different items. Comment

A: In a market, utility refers to the economic concept to explains the value of a good for a specific…

Q: Ross is a race car driver. The more he races, the happier he is. The level of happiness Ross feels…

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: Why is “consumer's utility is impossible to measure and quantify? Explain your answer.

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: Praxilla who lived in ancient Greece derives utility from Reading poems and from eating cucumbers.…

A: Marginal utility (MU)  is the additional gain that is derived by consuming an additional unit of a…

Q: What is the difference between ordinal utility and cardinal utility? Explain why the assumption of…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: A discussion about psychological law of consumption

A: According to the psychological law of consumption "Increase in income increases consumption but not…

Q: What does failing total utility for imply marginal utility? Give an arthimetical example to…

A: Marginal utility is the extra utility received from consuming one additional unit of the good per…

Q: Give a real-life example (from your daily life) that illustrates total utility rising as marginal…

A: Total utility(TU) is the satisfaction or benefit derived from consuming a good. Marginal utility(MU)…

Q: Check if the following utility functions represent the same preferences: u = x+y, v = x3 + y3, w =…

A:

Q: What does falling total utility imply for the marginal utility? Give an arithmetical example to…

A: The Total Utility(TU) is the amount of total satisfaction an individual receives from the…

Q: True or false.  A change in prices or income can alter preferences and thus the indifference curves…

A: In the mentioned question, we are asked whether there is any shift seen in the indifference curve…

Q: Marginal utility can also become negative True/False

A: The additional utility which adds with more consumption of goods and services is called marginal…