The table shows the total utility Ann derives from eating portions of salad. •How much marginal utility does Anna derive from the third portion of salad? •After eating how many portions of salad does marginal utility start to decline? •If the portions of salad were free, what is the maximum number of them Anna would eat in a week? •On separate diagrams, construct Anna’s total utility and marginal utility curves for salad. •Does the law of diminishing marginal utility hold? How do you know? Portion of salad/evening Total utility 0 0 1 30 2 48 3 60 4 70 5 78 6 80 7 76

The table shows the total utility Ann derives from eating portions of salad. •How much marginal utility does Anna derive from the third portion of salad? •After eating how many portions of salad does marginal utility start to decline? •If the portions of salad were free, what is the maximum number of them Anna would eat in a week? •On separate diagrams, construct Anna’s total utility and marginal utility curves for salad. •Does the law of diminishing marginal utility hold? How do you know? Portion of salad/evening Total utility 0 0 1 30 2 48 3 60 4 70 5 78 6 80 7 76

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 10RQ: What is the rule relating the ratio of marginal utility to prices of two goods at the optimal...

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What is the rule relating the ratio of marginal utility to prices of two goods at the optimal choice? Explain why, if this rule does not hold, the choice cannot be utility-maximizing
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John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke or does he show increasing marginal utility for Coke? Suppose that John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke? *use tables and/or graphs if possible, please original work
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