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- At the start of the week, Marie decides to buy a pie. Does this imply that the utility she receives from this pie is greater than or less than her opportunity cost of purchasing the pie? Marie is thinking about purchasing a second pie. Do we expect the marginal utility she receives from the second pie to be greater than, less than, or equal to the marginal utility she receives from the first pie? Explain your answer.Describe Marginal Utility and Diminishing Marginal Utility? Include a detailed example using a table.Explain the cardinal and ordinal utility approach ?
- Using the consumer choice theory, explain how an individual decides what combinations of different products to buy. Answer question step by step and use graph.would you rather maximize your total utility or your marginal utility?The concept of diminishing marginal utility with the help of necessary tables and graphs taking a suitable example.