Define, and then explain in your own words what the concept of Marginal Utility is:

Discuss the theory of diminishing marginal utility and give an example illustrating the concepts and techniques related to utility.

Which of the following statement is TRUE Group of answer choices As the consumption of a good increases, marginal utility rises, but total utility falls. As the consumption of a good increases, total utility falls and marginal utility falls. As the consumption of a good increases, total utility rises, but marginal utility falls.

The value for X is

The Law of Diminishing Marginal Utility is just a theory that has no application to everyday life. None of us behaves as if we were subject to this law. True or False? Explain.

Q#9

Use the following information to answer the question below. Cloe is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents each and hard candies cost 80 cents each. The marginal utilities derived from the consumption of each product are as shown in the following table.   Number of Items Marginal Utility of Chocolates Marginal Utility of Hard Candies 1 60 150 2 50 140 3 40 120 4 30 100 5 20  80 6 10  70 7   5  50 8   0  20   What is Cloe’s total utility at her utility maximizing bundle?   Multiple Choice   870 utils   620 utils   80 utils   150 utils