commodity is zero, then:             Total utility of this commodity has reached a maximum.             The paradox of value must have been reached.             The commodity in question has no utility, i.e. it’s not one that consumers want to use.             Total utility for this commodity must be zero also.

Q: The law of diminishing marginal utility      A) refers to the fall in additional satisfaction…

A: Marginal Utility refers to the additional satisfaction derived by the consumption of one more unit…

Q: 29. This is the concept that explains that trends of values continues to increase but at a certain…

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

Q: Apply marginal utility theory to the paradox of value

A: The change in the total utility when one additional unit of good is consumed is called marginal…

Q: A budget constraint is:   Group of answer choices   a line showing various combinations of goods…

A: Consumers buy goods and services which are affordable to them as per their income.

Q: In many cases, it is reasonable to refer to the ________________ as the price   Group of answer…

A: Budget constraint: It represents the different combinations of goods that can be purchased within a…

Q: Which of the following statements is true?     Total utility is the extra satisfaction from the…

A: Utility refers to the satisfaction received from consumption of a good or service. In other words,…

Q: Which of the following statements is correct? ___ Marginal utility is the sum of total utility. ____…

A: Total utility is the total satisfaction derived from consuming a good.

Q: If the Utility function of an individual takes the form u(x, y) = (x + 2)² (y + 3)³ where U is total…

A: As given U(X,Y) = (x+2)2(y+3)3 MUx =∂U∂x

Q: Question 9 Rational consumer behaviour is where a person consumes the amount of a good that…

A: Consumers consume commodities and services and in return, they attain utility or satisfaction from…

Q: This module considers important concepts in economics: Total Utility, Marginal Utility, Diminishing…

A: Law of diminishing marginal utility states that with every additional unit consumption of a goods…

Q: Signs of life -Summarize in your own words the distinctions between “Wants and ‘ need”

A: Economics is a study of social science, which deals with production, distribution and consumption.…

Q: A normal good An inferior good When the price of this commodity rises, the substitution effect is…

A: If customers don't buy much less of a good whilst income rises then it's a NORMAL GOOD, for this…

Q: The rate of market substitution is:             The consumer’s marginal utility             The…

A: The rate which depicts amount of one good being substituted for another good and is being used for…

Q: A reduction in the price of Y from OMR 12 to OMR 8 causes a growth in the quantity of C demanded…

A: The initial price of commodity "Y" = OMR 12 Final price of commodity "Y" = OMR 8 Demand for "C"…

Q: commodity. In other words, It is the utility derived from each additional unit. Marginal Utility…

A: Option A Marginal Utility It is the change in total utility which is attained when an additional…

Q: According to the law of diminishing marginal utility total utility will rise at a falling rate as…

A: Utility is described as the overall satisfaction a consumer feels after using a product or service.…

Q: Marginal utility is defined as the increment to total utility that results from the consumption of…

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

Q: Evaluate your marginal and total utility of consuming at an all you can eat pizza buffet. Explain…

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

Q: Is it reasonable to assume that people seek to equate the marginal utility/price ratios of the goods…

A: Introduction: The complete satisfaction gained from consuming an item or service is known as…

Q: If price represents the buyer's 'sacrifice' to consume a particular good, explain how the…

A: Concept Many consumers buy a luxury purse on a regular basis, perhaps as frequently as they buy a…

Q: If there is diminishing marginal utility, and the price of labor goes up, you supply more labor.…

A: Here, it is given that the market holds the law of diminishing marginal utility and at the same…

Q: state the law of diminishing marginal utility Q Total Utility Marginal utility Average utility 0 0…

A: The economics as a study is used to determine the ways, especially the most optimal way which can be…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: Marginal utility is that utility which are consumer get after consuming an additional unit of…

Q: Which political philosophy's prime objective is to raise total utility?   Question 38 options:…

A: Liberalism is the political belief which promotes free trade.  Communitarianism focuses on the…

Q: MRS is defined as: (a) Amount of good Y given up in exchange for good X such that total utility is…

A: # MRS is referred to be as Marginal rate of substitution.  MRS helps the consumer trade off some of…

Q: If the marginal utility from consuming the sixth unit of a product is 8 and the total utility from…

A: The total utility is the total satisfaction received by consuming the goods and services. The…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: Here,

Q: The price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity…

A: Marginal utility is the extra utility experienced with the consumption of an additional unit of a…

Q: The concept of diminishing marginal utility with the help of necessary tables and graphs taking a…

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

Q: Which of the following defines marginal utility? a. the maximum amount of satisfaction from…

A: Utility is the satisfaction a consumer derives from consuming total units of the good.

Q: Question 8 An optimizing consumer will select the consumption bundle in which the marginal rate of…

A: Marginal Rate of substitution is the volume of good that a consumer is willing to consume in…

Q: The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last…

A: Marginal utility is the utility derived from the consumption of an additional unit of the good. When…

Q: Given the utility function, where U is the total utility and x and y are the commodities consumed,…

A: U(x,y) = (5x+3)2(4y+2)3

Q: he utility theory that describes how much of one market basket is preferred to another is called the…

A: There are two types of approaches in the concept of utility that is qualitative and quantitative.…

Q: Assume the price of product Y (the quantity of which is on the vertical axis) is $10 and the price…

A: Given price of Product Y = 10 $ Price of Product X = 5 $ Income = 30 $ Therefore Qty of product Y =…

Q: impacts of marginal utility. Imagine that you are a seller of phones: How can you increase the…

A: Marginal Utility: When an individual consumes something then by consuming the extra amount of goods…

Q: Question 342. Under Marginal utility analysis, utility is assumed to be a A. Cardinal concept B.…

A: Marginal Utility can be referred to as the additional Utility obtained from the consumption of an…

Q: Using the utility-maximization rule as your point of reference, explain the income and substitution…

A: The utility is measured ordinally through indifference (IC) curve approach. The IC is a locus of…

Q: Suppose that at three units purchased, marginal utility is $8 and total utility is $30. If the…

A: Here, given information is, Marginal utility from three units: $8 Total utility from three units:…

Q: Question 14: Market pressures continually swing back and forth, driving towards a particular price…

A: When the market moves from the equilibrium towards the disequilibrium market forces always works to…

Q: Kimberly has $1,000 per year to spend between $50 concert tickets and $200 per night getaways. Her…

A: The answer is - The degree to which concerts and overnight getaways are normal goods or inferior…

Q: Q1.14 Utility from consuming a good is understood by economists to mean; (a) how often we consume…

A: Q1.14 We consume goods and services to satisfy our needs. A consumer eats good like pizza to satisfy…

Q: Given Utility function U=20Q-2Q^2, what quantity of good gives highest utility for the consumer?…

A: The utility (U) for a consumer is the amount of satisfaction procured or attained by an individual…

Q: Consumers will divide their income among all goods so that: the ratio of marginal utility to…

A: Answer: A consumer maximizes its utility where the ratios of marginal utility to the price of the…

Q: Laila decides to buy a $75 ticket to a particular New York professional hockey game rather than a…

A: Marginal utility measures the addition to total utility that results from consuming one more unit of…

Q: From the consumer’s viewpoint, which of the following is to get the most total satisfaction or value…

A: Customer satisfaction: The degree to which customers are satisfied with items is known as customer…