Which of the following statements is true? Total utility is the extra satisfaction from the consumption of a good or service. Marginal utility is the amount of satisfaction received from all the units of a good or service consumed. The law of diminishing marginal utility states that as more of a good or service is consumed total utility decreases. Consumer equilibrium is a combination of goods and services consumed which maximizes total utility from a given budget.
Which of the following statements is true? Total utility is the extra satisfaction from the consumption of a good or service. Marginal utility is the amount of satisfaction received from all the units of a good or service consumed. The law of diminishing marginal utility states that as more of a good or service is consumed total utility decreases. Consumer equilibrium is a combination of goods and services consumed which maximizes total utility from a given budget.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 22SQ
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Which of the following statements is true?
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Total utility is the extra satisfaction from the consumption of a good or service. |
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The law of diminishing marginal utility states that as more of a good or service is consumed total utility decreases. |
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Consumer equilibrium is a combination of goods and services consumed which maximizes total utility from a given budget. |
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