Microeconomics
Microeconomics
5th Edition
ISBN: 9781319098780
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
Question
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Chapter 10, Problem 2P
To determine

To use:

The concept of marginal utility to explain the given situations

Concept Introduction:

Marginal utility: This is the additional benefit or satisfaction derived from the consumption of an additional unit of a commodity or service.

Utility: This is the benefit or satisfaction derived from the consumption of a good or service.

Diminishing marginal utility: The diminishing marginal utility of economics says that if a person increases his consumption on a particular good while the consumption of other goods are at constant, it will result in a decrease of utility of that person if he consumes an extra additional unit of the particular commodity

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