At a certain pizza shop, a single customer could order a pizza dine-in for $12 but he could get a second one for $5 more. Explain what this has to do with marginal utility.

Q: Explain and differentiate preference and utility.

A: Definitions: Financial specialists utilize the term utility to portray the satisfaction that a buyer…

Q: Suppose two goods coffee and cream provide the consumer with utility but only if they are consumed…

A: If there is an increase in price of Coffee, then it will lead to an income effect but no…

Q: Which statement BEST describes the principle of diminishing marginal utility?

A: C is the correct option and describes the principle of marginal utility.

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: What is the law of diminishing utility? Please explain with a few examples.

A: Law of diminishing marginal utility says that as we consume more and more units of same good then…

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Since you have asked multiple questions, we will answer the first question for you. If you require…

Q: What is the law of diminishing marginal utility why or how is this relevant for our discussion of…

A: Marginal utility is the addition to the total utility received from consuming an additional unit of…

Q: Every Friday for two months, Shelley visits her favorite pizza place and buys a large pepperoni and…

A: Answer: Shelly eats pizza for 9 Fridays which leads to a decrease in the marginal utility of pizza…

Q: Explain the three characteristics of utility.

A: The economics as a study is based upon the idea that all the societies in the world tend to face a…

Q: The table below contains information about the total utility you gain from coffee you buy from a…

A: The TU {total utility} is described as the total satisfaction that a customer can derive from the…

Q: According to the law of diminishing marginal utility: Omarginal utility falls with the extra…

A: The law of diminishing marginal utility depicts that the marginal utility derived from each extra…

Q: The table below contains information about the total utility Jerry gains from coffee and pastries he…

A: Answer: Introduction: Marginal utility: marginal utility refers to the additional utility derived…

Q: Consumer spends $450 per week on two goods, X and Y. PX= $5 and PY=$3. His utility function is U=…

A: Consumers behavior is inclined towards utility maximization, whereas producers behavior is inclined…

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: James enjoys having either a peanut butter sandwich or a bologna sandwich for his lunch. A drop in…

A: consumer equilibrium is the situation where consumer gets utility maximised with given level of…

Q: What happens to marginal utility at the point where total utility is decreasing? Answers: a.…

A: Utility is the fulfillment or advantage inferred by devouring an item; in this manner the minimal…

Q: What is the law of diminishing utility? Explain with proper example.

A: The want satisfying power of a commodity is referred to as the utility.

Q: The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda…

A: We have giver marginal utility table of Pizza and soda, The price of mini pizza =1 and the price of…

Q: Bob budgets $12 a week for entertainment. He splits his time between going to the movies and going…

A: Given: Bob budget=$12Price of Movie=$3Price of gym=$3Bob wants to maximize his utility and utility…

Q: Shiela bought a new phone and paid $10,000. This means that her marginal utility from this new phone…

A: Here, it is given that Shiela bought a phone and she paid $10,000 for the phone.

Q: The following table shows the total utility gained from the consumption of Fanta Lemon in a week.…

A: The utility is the want satisfying power of the goods and services.  Marginal utility is the change…

Q: Paul has been babysitting for a family friend over the summer. In total, he has earned $200. Assume…

A: Marginal utility refers to the additional utility that obtained due to increasing the consumption by…

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: Explain marginal utility. Then describe the law of diminishing marginal utility and provide an…

A: Marginal Utility: - marginal utility is the utility derived by the consumption of an additional…

Q: Suppose that the price of good A and good B are $3 and $2 respectively. Suppose a consumer is…

A: In a market, when a consumer consumes two products, he will be at equilibrium when the Marginal…

Q: Define and explain the relationship between total utility, marginal utility, and the law of…

A: Law of diminishing marginal utility states as other factors are constant, rise in consumption will…

Q: George  drinks 5 cans of beer, his total utility of bear can be calcualted by   A. summing the…

A: The sum of the utility obtained from every unit of consumption is the total utility. If more units…

Q: Pick any random tangible good that gives you happiness or sense of contentment when you utilise it.…

A: In general, utility refers to the amount of joy or satisfaction (or alleviated suffering) that an…

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: If marginal utility is declining but still positive, total utility is increasing.  True or false…

A: The utility is the satisfaction received from consuming a good or service.

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: 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: Refer to the table below. If the subscription price for a sports app is $2 per week, the…

A: Given,The subscription price for a sports app Ps is $2 per week.The subscription price for a game…

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: Is it possible for total utility to increase while marginal utility diminishes

A: Step-1 Marginal utility(MU) is the change in the total utility(TU) due to small change in the…

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: Describe Marginal Utility and Diminishing Marginal Utility? Include a detailed example using a…

A: Marginal utility is defined as the satisfaction level received when consumer consume some level of…

Q: Quantity of Cheese Cakes (slices per day) Total Utility (TU) Marginal Utility (MU) 1 20   2…

A: The marginal utility can be defined as the additional utility that is received from the consumption…

Q: Diminishing Marginal Utility. Explain the law of diminishing marginal utility Discuss an instance…

A: The idea of marginal utility is used to measure how individuals' satisfaction levels affected their…