Question 342. Under Marginal utility analysis, utility is assumed to be a A. Cardinal concept B. Ordinal concept C. Indeterminate concept

Q: Q- Marginal utility can never be negative. True/False

A: Total utility is the total satisfaction that a consumer derives when he consumes goods and services.…

Q: Explain the consumer equilibrium point by using Indifference Curve Approach and the Budget Line.…

A: Budget line shows the constraint of income ie beyond which the consumer cannot spend.  Indifference…

Q: PROBLEM (3) A consumer has preferences over bundles of apples (x) and oranges (y) represented by the…

A: Answer: (a). Yes generally the indifference curves are bowed towards the origin. The reason is the…

Q: Define and explain marginal utility

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

Q: Define marginal utility. (50 words)

A: Utility means the satisfaction that a consumer gets after the consumption of a good or service. It…

Q: Topic: Marginal Total Utility Functions.   Give a hypothetical example below and explain in about…

A: When the consumer gets the added satisfaction from getting one more unit of a good or service that…

Q: Q. 4. Observe the given table and answer the questions: Unit of a commodity TU units MU units 1 6 2…

A: When total utility is maximum, marginal utility is zero When total utility falls, marginal. Utility…

Q: Explain the phrase “Less is more” in terms of Utility and cite 2 examples in your answer.

A: The utility is the consumer wants satisfying power of the goods or services.  Marginal utility is…

Q: Law of equi marginal utility is an important law of cardinal utility analysis. Explain this law with…

A: Cardinal Utility analysis is one of the oldest demand theory. It explains the law of demand that…

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: Complete the following table and answer the questions:   Units consumed Total utility…

A: An individual usually decides his demand based on the satisfaction that he derives from the…

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: The total utility of consuming five units of the B good is Blank 4 utils. The total utility of…

A: We have given the marginal utility for consuming good A, good B, and good C Marginal utility is the…

Q: Define law of diminishing marginal utility concept with example

A: The basic law of consumption is 'law of diminishing marginal utility'.  The marginal 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 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: i. It is known that the indifference curve is convex. What does this tell you about the relationship…

A: Answer - Part"1" Answer -When Indifference curve shows that which give show the combination  of two…

Q: The principle of diminishing marginal utility says that A. total utility increases by smaller and…

A: Law of diminishing utility means that additional utility gained from consuming one more unit factor…

Q: Question 8 Total Utility Oranges Marginal Utility Total Utility Oranges Marginal Utility Lemons…

A: Marginal utility refers to an additional utility with one more unit of good or service consumed.

Q: .Enumerate at least five interpretations of the graph of the Total Utility curve 2.Enumerate at…

A: Total Utility Curve: Total utility curve is the combination of consumer demand theory and its…

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: Explain the relationship between marginal utility and the total utility with the help of a diagram.

A: In economics, utility refers to the satisfaction that an individual receives from the consumption of…

Q: An old nursery rhyme tells us : Jack Sprat would eat no fat; his wife would eat no lean. This tells…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Question Use the utility function u(x1, x2) = logx:+ logx2 and the budget constraint p.x: + px2= 1.…

A: The indirect utility function is a function of prices of goods and the consumer's income. The…

Q: A consumer has preferences over two goods, coconuts and fish. The consumer prefers more of each good…

A: Indifference curve represents the combinations of two goods between which the cunsumers are…

Q: Question 8 Given the utility function U = 2x+5y, what is the equation of the indifference curve that…

A: Utility refers to the satisfaction derived from the consumption of good. The utility function shows…

Q: The primary goal of very consumer is to maximize satisfaction. Explain, how a consumer achieves…

A: In economics, it is assumed that consumers are rational and they try to maximize their utility.…

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: QUESTION 8 If a consumer's preferences are represented by the utility function: U(x,y)=min{4x,y}…

A: This is a perfect complements utility function. Perfect complements are those goods which are…

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: Consider a consumer whose preferences are represented by a utility function u(a, y) = a0.5 5. Are…

A: Utility function can be defined as the measure for a group of goods and services preferred by…

Q: Discuss the theory of diminishing marginal utility and give an example illustrating the concepts and…

A: What Is Diminishing Marginal Utility?  The Law Of Diminishing Marginal Utility can be defined as the…

Q: 07 Assumption on which indifference curve is based: (a) Marginal rate of substitution is falling.…

A: # The correct answer is (D)

Q: what does it mean if the utility function is ordinal and not cardinal.

A: Ordinal refers to order of a series. Cardinal refers to giving a value to the series.

Q: When does marginal utility become 1) Negative 2) zero Explain

A: According to the given question In the simple words we can say that the marginal utility is the…

Q: d) Cardinal Utility (Discuss why this is rarely used) e) Monotonic Transformation (example below) f)…

A: d. Cardial utility is the concept of giving numerical values to ones utility. For example, utility…

Q: Indifference curves represent: a) Ability to pay b) Total Utility c) Marginal Utility d) None of the…

A: Total utility refers to the total satisfaction that a consumer gets from consuming a good. Marginal…

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: 35. When total utility becomes maximum, then marginal utility will be

A: To find : What will be marginal utility when total utility becomes maximum.