d) Explain the difference between ordinal and cardinal utility. Which one is generally used in economics? Why?

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: What are the limitations of the law of Equi- marginal utility

A: According to the given question The law of equi marginal utility states that when the consumer…

Q: What are the assumptions of the law of the diminishing marginal utility in economics

A: The law of diminishing marginal utility states that as an additional unit is consumed, the marginal…

Q: Can someone else measure your utility why or why not?

A: The term "utility" is commonly used in the subject of economics. It can be used to calculate the…

Q: John is maximizing utility when consuming two goods, French fries and hot dogs. If the marginal…

A: Utility Maximization is the situation where a consumer spend his all income on goods that maximise…

Q: Quantity Total Utility 1 20 2 36 3 46 4 54 5 60 64 According to the total utility table given above,…

A: The Marginal Utility per dollar for every quantity is given below in the table:

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: Elaborate the concept of Law of Diminishing Marginal Utility

A: A consumer's increased enjoyment from having one more unit of an item or service is referred to as…

Q: How does utility theory differentiate a “need” from a “want”?

A: Utility alludes to the total fulfillment got from the utilization of a thing or service. As the…

Q: Discuss how the utility-maximization model helps highlight the income and substitution effects of a…

A: Q: Discuss how the utility-maximization model helps highlight the income and substitution effects of…

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: Distinguish between cardinal and ordinal utility

A:

Q: What are the assumptions of cardinal utility theory? Explain the law of diminishing marginal utility…

A: The Cardinal Utility approach is supported by neo-classical economists, who assume that utility is…

Q: Explain the cardinal and ordinal utility approach ?

A: Utility: Utility is the wants satisfying power of goods or services; in other words, utility is the…

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: What do you think is more realistic approach between cardinal and ordinal approaches to consumer…

A: Ordinal Utility The Ordinal Utility approach in consumer theory is based on the fact that the…

Q: The law of explains why people and societies rarely make all-or-nothing choices. diminishing…

A: (A)

Q: Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you…

A: A person who either orders or use purchased services or goods being for uses including personal,…

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: Define marginal utility and Provide an argument why to maximize total utility of good x and good y,…

A: The want satisfying power of a good is termed as the utility. The summation of utility derived from…

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: According to the law of diminishing marginal utility:   a. as you consume less of something, your…

A: As consumer consumes more of one good, the marginal utility derived from each subsequent unit…

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: Pareto eliminated psychology from economics: a. by defining utility as ordinal, not cardinal utility…

A: Pareto is generally known as the main analyst of this switch (psychology to economics), and…

Q: Explain how non-convexity in choice can result in multiple optimal choices. Provide a graphical…

A: An indifference curve refers to the combination of two goods that give a consumer the same…

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: State and explain the law of diminishing marginal utility .Why does the law operate ?

A: The utility is the want satisfying power of the commodity. The preference of the consumer depends on…

Q: Question 7     The law of diminishing marginal utility states that:             Utility derived…

A: The concept of law of diminishing marginal utility was given by Marshall and states that all things…

Q: define utility with its practical examples also explain its different measures in detail?

A: In economics,  the term utility refers to quality of a commodity by virtue of which is satisfies our…

Q: example of Diminishing Marginal Utility and briefly explain why?

A: Diminishing marginal utility means when a consumer consumes a good then marginal utility derived…

Q: Which of the following economic mysteries does the law of diminishing marginal utility help explain?…

A: The economic mysteries which here the law of diminishing marginal utility explains is the mystery of…

Q: Explain Law of Diminishing Marginal Utility with an example?

A: The law of diminishing marginal utility states that when a person increases consumption of a product…

Q: Suppose the following table reflects the total satisfaction (utility) derived from eating pizza:…

A: The utility is an important concept of the consumers’ demand theory. Marginal utility is the utility…

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…