CONNECT F/MICROECONOMICS
21st Edition
ISBN: 2810022151240
Author: McConnell
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 7.1, Problem 3QQ
To determine
Marginal utility .
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
D
Quantity
Refer to the graph shown. Between points B and D, marginal utility is:
increasing, and so total utility is falling.
increasing, and so total utility is at its maximum.
positive, and so total utility is falling.
positive, and so total utility is increasing.
Marginal Utility
C
D
:.
Quantity
Refer to the graph shown. Between points C and D, marginal utility is:
positive, and so total utility is increasing.
positive, and so total utility is falling.
O decreasing, and so total utility is at its maximum.
decreasing, and so total utility is falling.
Marginal Utility
B
26. If you have Marginal utility of 2
with a Total utility equals to 56,
then when marginal utility is
reduce to zero while Total utility
remains the same, what does it
mean?
a. satisfaction diminishes
b. TU is maximum
c. Quantity diminishes
d. Marginal utility is maximum
Chapter 7 Solutions
CONNECT F/MICROECONOMICS
Ch. 7.1 - Prob. 1QQCh. 7.1 - Prob. 2QQCh. 7.1 - Prob. 3QQCh. 7.1 - Prob. 4QQCh. 7.A - Prob. 1ADQCh. 7.A - Prob. 2ADQCh. 7.A - Prob. 3ADQCh. 7.A - Prob. 1ARQCh. 7.A - Prob. 2ARQCh. 7.A - Prob. 1AP
Ch. 7.A - Prob. 2APCh. 7.A - Prob. 3APCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7P
Knowledge Booster
Similar questions
- 27. If you have Marginal utility of 2 with a Total utility equals to 56, then when marginal utility is reduce to zero while Total utility remains the same, what does it mean? a. at 56 utils of MU equals zero, utility begins to gain momentum b. at 56 utils of MU equals zero, utility begins to diminish c. at 56 utils of MU equals zero. utility begins to increase d. at 56 utils of MU equals zero, utility begins to upswingarrow_forwardQ) Marginal utility measures the Select one:a. additional cost of an additional unit of consumption.b. additional utility from an additional unit of consumption.c. total utility from consumption.d. average utility from an additional unit of consumption.arrow_forwardMarginal Utility B C D Quantity Refer to the graph shown. Between points C and D, marginal utility is: positive, and so total utility is increasing. decreasing, and so total utility is at its maximum. positive, and so total utility is falling. decreasing, and so total utility is falling.arrow_forward
- The amount by which total utility increases (or decreases) when an additional unit of a good is consumed is called utility. average marginal maximum diminishing marginal O increasing marginalarrow_forwardAccording to the law of diminishing marginal utility, what happens as a consumer consumes more units of a good? A. Total utility increases at a decreasing rate.B. Marginal utility increases at a decreasing rate.C. Total utility decreases at an increasing rate.D. Marginal utility decreases at an increasing rate.arrow_forwardQuantity X TUx MUX MUX/Px Quantity Y TUy MUY MUy/Py 1 75 1 96 135 60 B 72 185 50 3 234 66 4 230 45 A 4 294 60 270 5 348 54 2.arrow_forward
- Total utility OA. falls as long as marginal utility is negative. OB. is at a maximum when marginal utility is zero. OC. rises as long as marginal utility is positive. OD. All of the above.arrow_forward4. Consider the utility function U(r,g) r + Iny. (a) Find the marginal rate of substitution. MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of r and y. How do you interpret these functions? How might a consumer choose between e and y as she tries to increase utility by, for example, consuming more when their income increases?arrow_forward2. Zhoran has a budget of $36 for fruit. Strawberries cost $4 per pound and grapes cost $3 per pound. She likes both type of fruit and she has a diminishing marginal rate of substitution. (a) Draw a diagram illustrating Zhoran's budget constraint. Label both intercepts with their numerical values. What is the slope of her budget line? (b) Illustrate Zhoran's optimal combination of strawberries and grapes on your dia- gram. Any picture that is consistent with the facts described here is acceptable. Explain how your diagram demonstrates that the point you've chosen is the op- timal point for Zhoran. (c) Suppose Zhoran's budget increases to $48. How will this change her consumption decision? Illustrate your answer on your diagram and explain your picture.arrow_forward
- Which statement BEST describes the principle of diminishing marginal utility? As an individual consumes more of a good: Select one: a. the marginal utility will eventually become negative. b. the total utility obtained will eventually become negative. c. the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good. d. the total utility obtained will eventually fall.arrow_forwardNumber Consumed Total Utility Marginal Utility 0 0 NA 1 9 9 2 19 10 3 27 8 4 35 9 5 42 7 6 42 0 7 40 -2 When does diminishing marginal utility begin to set in?arrow_forwardExplain the law of Equi marginal utility with the help of schedule. (arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
