44) A person is in equilibrium when marginal utility per dollar equals 1. False True

Q: The law of diminishing marginal utility      A) refers to the fall in additional satisfaction…

A: Marginal Utility refers to the additional satisfaction derived by the consumption of one more unit…

Q: A company offers the following buying options for good x to its customers: For the first 30 units,…

A: Given information Two goods X and Y For first 30 units of X pay full price After that for next 20…

Q: A budget constraint is:   Group of answer choices   a line showing various combinations of goods…

A: Consumers buy goods and services which are affordable to them as per their income.

Q: Indifference map of a customer is given by formula Q1 = (3Q2 - c)2, and budget line by formula Q1 =…

A: Q1 and Q2 are the two goods in this, and c is the utility. Therefore, making c the subject in our…

Q: Which of the following statements is true?     Total utility is the extra satisfaction from the…

A: Utility refers to the satisfaction received from consumption of a good or service. In other words,…

Q: Which statement BEST describes the principle of diminishing marginal utility?

A: C is the correct option and describes the principle of marginal utility.

Q: Which of the following statements is correct? ___ Marginal utility is the sum of total utility. ____…

A: Total utility is the total satisfaction derived from consuming a good.

Q: To remain in consumer​ optimum, a price decrease requires(blank) in consumption. A price increase…

A: 1. As per law of demand, decrease in price will result in increase in demand.   A price decrease…

Q: Diminishing marginal utility refers to the fact that demand declines as income falls. additional…

A: The total utility is the total satisfaction received by the consumer by consuming goods and…

Q: To remain in consumer optimum, a price decrease requires V in consumption. A price increase requires…

A: To remain in consumer optimum, a price decrease requires an increase in consumption. A price…

Q: This module considers important concepts in economics: Total Utility, Marginal Utility, Diminishing…

A: Law of diminishing marginal utility states that with every additional unit consumption of a goods…

Q: Assume that a combination of two goods reflects a point of tangency between the budget line and an…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: The MU of the last unit of good A consumed is 4 utils and the MU of the last unit of B consumed is…

A: Utility is maximized when marginal rate of substitution is equal to price ratio of goods. Marginal…

Q: Marginal utility is defined as the increment to total utility that results from the consumption of…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: Suppose an individual's utility function is given by the following expression: U (q1 , q2) = min…

A: Individuals (consumers) directly concerned within the acquisition, use, and disposal of economic…

Q: A utility maximizing consumer necessarily minimizes expenditure". Is this statement true or false?.…

A: The utility is basically the enjoyment or satisfaction that the customer gets or obtains when a…

Q: What condition should be met in order for the consumer to maximize satisfaction in the consumption…

A: Consumer Utility Maximisation - Utility maximisation is an important concept in microeconomics. It…

Q: Given a utility function that represents preference over bundles which consists of two goods. Can we…

A: To analyze consumer behavior and their satisfaction from the consumption of goods and services,…

Q: Consider the following utility function for goods x1 and x2:   u(x1,x2)=(x1+x2)2    What type of…

A: Utility function is a representation of individuals preferences for goods and services.

Q: The marginal rate of substitution is the maximum number of units of good Y that the consumer would…

A: Option -: All of the above is correct The marginal rate of substitution is defined as the…

Q: If price represents the buyer's 'sacrifice' to consume a particular good, explain how the…

A: Concept Many consumers buy a luxury purse on a regular basis, perhaps as frequently as they buy a…

Q: Consumer spends $450 per week on two goods, X and Y. PX= $5 and PY=$3. His utility function is U=…

A: Given,  U= 0.5xy2

Q: In the below figure, a consumer is initially in equilibrium at point C. The consumer's income is…

A: Indifference curves are defiend as the locus of all the points with equal level of satisfaction.…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: Marginal utility is that utility which are consumer get after consuming an additional unit of…

Q: Economists assume that the objective of consumers is to maximize their _____   Question 37 options:…

A: Utility- It is the total satisfaction that is received from the consumption of a good or service.

Q: he marginal rate of technical substitution Group of answer choices is the rate at which one input…

A: The marginal rate of technical substitution (MRTS):   MRTS is the rate at which the firm can trade…

Q: A consumer has a Cobb-Douglas utility function and consumes two goods x and y. If the price of good…

A: Introduction: The utility function in economics assesses a consumer's well-being or pleasure as a…

Q: An increase in the price of a good causes Select one: a. none b. An increase in the consumption of…

A: The law of demand indicates the inverse relationship between the price of the good and its quantity…

Q: The price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity…

A: Marginal utility is the extra utility experienced with the consumption of an additional unit of a…

Q: If the price of good x1 and p1 = 2, the price of good x2 is p2 = 3, Kramer's available income is m…

A: We have given that  price of good x1 (p1) =2 Price of good x2  (p2)=3 Kramer's income (m)=16 Utility…

Q: Question 8 An optimizing consumer will select the consumption bundle in which the marginal rate of…

A: Marginal Rate of substitution is the volume of good that a consumer is willing to consume in…

Q: The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last…

A: Marginal utility is the utility derived from the consumption of an additional unit of the good. When…

Q: Explain the consumer equilibrium condition according to utility theory. Include in  your answer the…

A: Equilibrium of a Single Good: When a consumer buys a commodity, he stops when the price and utility…

Q: he utility theory that describes how much of one market basket is preferred to another is called the…

A: There are two types of approaches in the concept of utility that is qualitative and quantitative.…

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: Draw an optimal consumption bundle which represents that consumers are willing to pay a greater…

A: The optimal consumption bundle is a collection of items that fit within a budget and provides the…

Q: TRUE OR FALSE? Maximilian consumes two goods, x and y. His utility function is U(x, y) = max{x, y}.…

A: Please find the attached answer os all three questions below-

Q: Refer to the above diagram. In this instance:   Question 5 options:   the BC line is diagonal…

A: Indifference curve: - it is the graphical representation of different combinations of two goods that…

Q: Explain the principles, concepts, and theories underlying individual consumers’ behaviour with…

A: Utility is the want satisficing power of a commodity, it differs from person to person and changes…

Q: Question 14: Market pressures continually swing back and forth, driving towards a particular price…

A: When the market moves from the equilibrium towards the disequilibrium market forces always works to…

Q: Marginal utility analysis predicts a downward-sloping demand curve for good X because... a. As PX…

A: Answer in step 2

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: A person can maximize his utility at the point where the marginal utility per dollar derived from…

Q: Explain whether the following statement is true, false, or uncertain. A consumer consumes two…

A: In a market, if the goods are complements like butter and jam, then a increase in price of bread…

Q: Cherise considers movies and concerts to be perfect substitutes. When Cherise maximizes her utility,…

A: Perfect substitutes are two goods that can be used in place of each other.An IC is the graphical…

Q: Which of the following statements is correct? Multiple Choice   Marginal utility is the…

A: The measure that in turn depicts the total satisfaction that is being received from the consumption…

Q: The preferences of a typical Californian can be represented by the following utility function: U…

A: U (x1 , x2 ) = α ln(x1) + (1 − α) ln(x2) α=0.25 U (x1 , x2 ) = 0.25 ln(x1) + 0.75 ln(x2)

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…

Q: The substitution effect. Multiple Choice is generally so weak that its effect cannot be predicted.…

A: The price effect includes income effect and substitution effect. It is the summation of two effects…