The concept of diminishing marginal utility says that the satisfaction level of human beings drop as we get more of something. Because of this, we place less value in the good or service and human beings will then demand lower prices for additional units. True or False

Q: Explain and differentiate preference and utility.

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

Q: A rational consumer would want as much as many goods as possible to maximize utility derived from…

A: Utility refers to the satisfaction or enjoyment a consumer can get from a service or good.

Q: Jack and Jill live in the same village where they both face the same price. Jack has preferences…

A:

Q: think about a time when you experienced diminishing marginal utility. Then write your own example…

A: The notion of marginal utility in economics describes the extra pleasure or benefit that a customer…

Q: The marginal utility is represented by the: Price P a b S D Quantity

A: Utility is the satisfaction gained by the consumer by consumption of a good. Marginal utility is the…

Q: Apply marginal utility theory to the paradox of value

A: The change in the total utility when one additional unit of good is consumed is called marginal…

Q: John is maximizing utility when consuming two goods, French fries and hot dogs. If the marginal…

A: Utility Maximization is the situation where a consumer spend his all income on goods that maximise…

Q: Who introduced utility

A: Utility is characterised as the whole satisfaction a customer experiences when utilising a good or…

Q: As an individual consumes more and more of a good, each additional unit brings about less and less…

A: Marginal Utility refers to the additional satisfaction derived from consumption of an additional…

Q: compute the marginal utility of good X (MUX) and the marginal utility of good Y (MUY). b. U=U ( X…

A: Answer: Given, Utility function: U ( X ,Y )=X0.5Y0.4

Q: a) If the price of food is $1, and of all else is $2, how much of each good will Pat choose? b) If…

A: Consumer theory studies how people decide to spend their money based on their individual preferences…

Q: At a certain pizza shop, a single customer could order a pizza dine-in for $12 but he could get a…

A:

Q: Which of the following choices best explains how marginal utility causes the average person to eat…

A: Marginal utility describes the extra benefit obtained from consuming one more item of a product. It…

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: If the marginal utility per dollar is not the same for each good, the consumer could on goods for…

A: Marginal utility implies the extra utility derived from an extra unit of a product.

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: Diana loves to buy shoes. However, after buying 10 new pairs of shoes she realizes that the tenth…

A: Marginal Utility : It explains the change in the total utility as consumer consumes an additional…

Q: Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $6 and the…

A: Given: Frank is making purchases of products C and D in profit maximizing amounts. Price of C=$6…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Indifference curve shows the combination of two goods which give a consumer same level of…

Q: ou are having lunch at an all-you-can-eat buffet. If you are rational, what should be your marginal…

A: 1. What is Marginal Utility?Marginal utility is the fulfillment or advantage you gain from devouring…

Q: What is the law of diminishing marginal utility for consumers, what is the learning curve of a…

A: Marginal utility for consumers is defined as the additional utility derived by the consumer from the…

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: Jane has a utility given as U = 4 C^2 F where C and F are the numbers of cloth and food. The prices…

A: Given utility function U=4C2F                     .........(1) Price of cloth  and food are Pc=4 and…

Q: Jamini has $800 of income to spend on goods X and Y. The prices of goods X and Y are $200 and $10,…

A: Wants satisfying power of commodity called utility , and when anyone get their utility equals to…

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: Donald derives utility from only two goods, carrots (X) and donuts (Y). His utility function  is as…

A: Utility indicates the satisfaction earned by consumers from the consumption of some goods.

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: Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer…

A: Introduction Normal Goods : The consumption of things classified as 'normal' rises as income does.…

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: Why would an ounce of gold be priced higher than an ounce of coffee beans, even though coffee is…

A: Marginal utility refers to the additional satisfaction or value gained from consuming one additional…

Q: Use the Law of Diminishing Marginal Utility to discuss why Market Demand has to have a downward…

A: Utility is the satisfaction  derive by consuming goods and services. And due to law of diminishing…

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…

Q: Shiela bought a new phone and paid $10,000. This means that her marginal utility from this new phone…

A: Here, it is given that Shiela bought a phone and she paid $10,000 for the phone.

Q: A consumer derives his utility from two goods, the amounts of which are x and y, according to the…

A: Given  Utility function U=2lnx+lny         .......(1) Px=$2 and Py=$4 Consumer income =$48 We have…

Q: To maximize total utility, consumers will always choose the marginal unit of the good that yields…

A: Utility maximisation implied the concept that individuals and firms seek to get the highest…

Q: Brayden receives some utility from consuming a bottle of store-brand soda, an inferior good.…

A: Normal goods and inferior goods are concepts in economics that describe how consumer demand changes…

Q: 10 9 IC, 8 IC, 10 12 Good Y The utility a person gets from consuming an additional unit of Good Y at…

A: An indifference curve shows the various combinations of two goods that give the consumer equal…

Q: would you rather maximize your total utility or your marginal utility?

A: Total Utility is the total satisfaction that a consumer receives when he consumes different units of…

Q: The following table shows the amounts of additional satisfaction (marginal utility) that Ross would…

A: Utility is defined as the usefulness or the satisfaction a consumer derives from a good or service…

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: In economics, utility refers to the overall satisfaction derived from the consumption of a good or…