At a certain pizza shop, a single customer could order a pizza dine-in for $12 but he could get a second one for $5 more. Explain what this has to do with marginal utility.

Q: Explain and differentiate preference and utility.

A: Definitions: Financial specialists utilize the term utility to portray the satisfaction that a buyer…

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Utility maximization was first developed by utilitarian philosophers Jeremy Bentham and John Stewart…

Q: Give a numerical example that illustrates total utility rising as marginal utility declines.

A: Total Utility: - the total utility is the aggregate utility derived by the consumption of a good.…

Q: What is the law of diminishing utility? Please explain with a few examples.

A: Law of diminishing marginal utility says that as we consume more and more units of same good then…

Q: If something has negative marginal utility, what happens to your total utilitywhen you consume it?

A: Marginal utility is defined as the utility gains after one more extra unit of consumption. It means…

Q: Max enjoys windsurfing and snorkeling. Max has $35 a day to spend, and he can spend as much time as…

A: Consumer theory is the study of how people allocate their money and available monetary income based…

Q: How does utility theory differentiate a “need” from a “want”?

A: Utility alludes to the total fulfillment got from the utilization of a thing or service. As the…

Q: Would you expect marginal utility to rise or fall with additional consumption of a good? Why?

A: Marginal utility is the change in the total utility when a person consumes an additional unit of a…

Q: Consider the figure to the right, and suppose that the initial point is A. Explain why a decrease in…

A: Marginal utility refers to the additional satisfaction or usefulness that a consumer derives from…

Q: How do your total and marginal utility change as you stay at home watching the same TV show (not…

A: The objective of the question is to understand how total and marginal utility change as a person…

Q: The table below shows the total utility from consuming different quantities of tacos. Use the…

A: In economics utility refers to benefit or enjoyment received from consumption of a good or service.…

Q: True/False Marginal utility keeps falling with the each additional consumption of a good or…

A: Economists uses the concept of marginal utility to determine how much of a product consumers are…

Q: Explain the three characteristics of utility.

A: The economics as a study is based upon the idea that all the societies in the world tend to face a…

Q: Suppose one have a budget of $1000. The price of one unit of X is $20 and the price of one Unit of Y…

A: Thus, the consumer can purchase 50 units of X, or 100 units of Y, or some allocation in between.…

Q: According to the law of diminishing marginal utility: Omarginal utility falls with the extra…

A: The law of diminishing marginal utility depicts that the marginal utility derived from each extra…

Q: How does global demand for fish affect marine natural resource economics? Please give a reference.

A: The global demand for fish occurs when people demand fish all over the world. Its demand is…

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

A: Consumers behavior is inclined towards utility maximization, whereas producers behavior is inclined…

Q: The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda…

A: Given: The price of mini pizza is = $1 The price of soda is = $0.50 The total amount to spend is =…

Q: Suppose it is “All You Can Eat” Night at your favorite restaurant. Once you’ve paid $69.95 for your…

A: Utility refers to the satisfaction attained from the consumption of goods. The aim of the consumer…

Q: What is marginal utility.

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: Reid has the following utility function. U = 24m1/3d1/2  where U is Reid's total utility, m is the…

A: (a) U = 24m 1/3 d 1/2 – α (m+0.6 d -25) MU m = 1/3*24m-2/3 d 1/2 – α*1 MU d= ½ *24 m 1/3 d-1/2 -…

Q: Explain three assumptions about the properties of consumers’ preferences.

A: Consumer preferences are defined as the tastes of people which is measured through utility. Consumer…

Q: explain law of diminishing marginal utility concept with exampl

A: The additional pleasure or benefit (utility) a customer obtains by acquiring an extra unit of a…

Q: You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5.    Marginal utility…

A: Maximum utility  Utility maximization is the desire for the greatest amount of pleasure from one's…

Q: Calculate the Marginal Utility then the MU/P to find Consumer Optimum. How many drink(s) and Big…

A: PLease check the step 2 for solution

Q: et us consider the case of Saiful who derives positive marginal utility from consuming apples. In…

A: Total utility refers to the total amount of satisfaction or fulfilment gained by a consumer as a…

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: Total utility is the addition of all the marginal utilities that an individual derives from…

A: The want satisfying power of a commodity is called utility. As per Marshallian theory of consumer,…

Q: Explain the correlation between marginal utility and consumer's

A:

Q: Consider the figure to the right, and suppose that the initial point is A. Explain why a decrease in…

A: The approach proposed in the question is based on consumer theory, namely the Law of Demand and the…

Q: What is the law of diminishing utility? Explain with proper example.

A: The want satisfying power of a commodity is referred to as the utility.

Q: Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you…

A: A person who either orders or use purchased services or goods being for uses including personal,…

Q: Based on the table below, what is the marginal utility from the 2nd unit? UNITS TOTAL UTILITY 1…

A: Marginal utility =change in the total utility from that unit of consumption  Marginal utility from…