You were presented with a utility maximizing rule which states: If you always choose the item with the greatest marginal utility per dollar spent, when your budget is exhausted, the utility maximizing choice should occur where the marginal utility per dollar spent is the same for both goods.     That rule is expressed as follows: Group of answer choices   (The marginal utility associated with good 1 / the price of good 2) = (the marginal utility associated with good 2 / the price of good 1)   % change in price / % change in quantity   (The marginal utility associated with good 1 / the price of good 1) = (the marginal utility associated with good 2 / the price of good 2)   The marginal utility per dollar of good 1 > the marginal utility per dollar of good 2

Q: Derive the Marginal utility function from the following Total Utility function: TU = 200Q – 25Q² +…

A: Microeconomics studies the economic behavior of the individual unit such as a firm, a market, a…

Q: The table below represents how Marco feels about chocolate candy bars. a. Fill in the missing…

A: Utility means the level of satisfaction that is derived from the consumption of a good or service.

Q: Which of the following statements is true?     Total utility is the extra satisfaction from the…

A: Utility refers to the satisfaction received from consumption of a good or service. In other words,…

Q: Which of the following statements is correct? ___ Marginal utility is the sum of total utility. ____…

A: Total utility is the total satisfaction derived from consuming a good.

Q: Show how the budget constraint affects utility maximization.

A: Answer: Introduction: A consumer maximizes his/her utility by choosing the bundle of goods that…

Q: Suppose Pizza (P) and Hamburgers (H) are perfect substitutes to Kate. Two slices of Pizza always…

A: Given  Pizza (P) and Hamburgers (H) are perfect substitute  and utility from 2 slices of Pizza =…

Q: Suppose the utility function of a person consuming two commodities X and Y with income Birr 600 is…

A: Given values in the question are following -:…

Q: Martha spends 5 hours of free time exercising and playing music per day. The table below represents…

A: Utility refers to the level of satisfaction that a consumer receives by consuming a good. A rational…

Q: Explain how revealed preferences indicate which goods or activities give aperson the most utility.

A: The Revealed preference theory was introduced by professor Paul A. Samuelson. This theory explains…

Q: Given the assumptions of the law of diminishing marginal utility (exactly the same product consumed…

A: Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an…

Q: Consider a hypothetical consumer named Hayden who is shopping for bread and brie. The graph with…

A: The graph shows two points and associated values for bread and brie combinations correspond to…

Q: Show that the following utility function satisfies all axioms of consumer preference: U%3Dху х,у20

A: The utility function shows the numerical measurement of the preference and the satisfaction. The…

Q: Consumers will maximize the total utility from their incomes by consuming combination of goods is…

A: A consumer is one who buys products for his/her satisfaction. The consumer also buys products for…

Q: According to the law of diminishing marginal utility total utility will rise at a falling rate as…

A: Utility is described as the overall satisfaction a consumer feels after using a product or service.…

Q: Marginal utility is defined as the increment to total utility that results from the consumption of…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: The law of diminishing marginal utility states that Multiple Choice O total utility is maximized…

A: Utility is defined as the total amount of satisfaction derived from the consumption of a good.…

Q: Consider the following utility function: U = 4X + Y. A consumer faces prices of P, = $2 and Py =1.…

A: Answer: A consumer maximizes his/her utility where the following condition satisfies:…

Q: Ceja has utility function U=A2*B2 , where A equals the number of apples she eats each week, while B…

A: utility function U=A2*B2 where A = Apples and B = Banana Income = $20 Cost of apple = 1 cost of…

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: Marina decides to purchase a ring made from an alloy composed exclusively of gold (G) and titanium…

A: Introduction: A customer is considered to be in an equilibrium condition when they believe that they…

Q: Suppose a consumer has preferences between two goods that are perfect substitutes. Can you change…

A: In economics, the price of a good and the quantity consumed are inversely related. When the price…

Q: Assuming, there are two goods: Coffee and Tea. Your budget is 18,000 KRW per day. The price of…

A:

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: Here,

Q: True or False? The preferences represented by the utility function u(x, y) = A + 0.4 * log(x) + 0.6…

A: In economics, utility refers to the pleasure or happiness that consumers derive from using a product…

Q: A consumer has a Cobb-Douglas utility function and consumes two goods x and y. If the price of good…

A: Introduction: The utility function in economics assesses a consumer's well-being or pleasure as a…

Q: Suppose the consumer is endowed with 10 units of orange and consumes 5 units of apple. The price of…

A: Endowment factor depicts how individuals will generally esteem things that they own more…

Q: Based on several observations, people at older ages tend to buy more luxurious products than when…

A: The diminishing marginal utility concept states that marginal utility derived from each additional…

Q: The price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity…

A: Marginal utility is the extra utility experienced with the consumption of an additional unit of a…

Q: Praxilla who lived in ancient Greece derives utility from Reading poems and from eating cucumbers.…

A: Marginal utility (MU)  is the additional gain that is derived by consuming an additional unit of a…

Q: Assuming utility positively depends on two goods, indifference curves can cross or intersect. True…

A: Indifference curve is a graphical representation which shows different level of combinations of two…

Q: If a good is free, when will a consumer stop wanting to buy the good? Once the total utility equals…

A: ''Since multiple questions are asked, we are supposed to answer one question''   Marginal Utility is…

Q: T/F Explain If preference is strongly convex, the utility function will exhibit dimin- ishing…

A: The satisfaction or benefit acquired from consuming a product is referred to as utility;…

Q: The marginal utility for the sixth unit is:

A: Marginal utility:  The change in the utility from the increase in consumption of goods is marginal…

Q: Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium…

A: Here, weighted marginal utility is given as 70 at equilibrium, it implies that MUm is equal to 70.

Q: Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $4.00 and…

A:

Q: Give examples of preference relation that is monotone but not continuous and is representable by a…

A: In Microeconomics and Consumer Behavior, monotonicity of any preference relation refers to the…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: A person can maximize his utility at the point where the marginal utility per dollar derived from…

Q: suppose the utility function of Vivian is U=602/3Y1/3. The unit priice of Good X is $10 while the…

A: We have cobb Douglas utility function, for vivian. Utility is maximized where MRS = price ratio.

Q: This is in accordance with the principle of diminishing marginal utility. Which of the following are…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: marginal rate of substitution (MRS) can be defined as: Select one or more: a. The amount of one…

A: Marginal rate of substitution depicts the relative price of two goods.

Q: The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is…

A: Given information:  Price of a=$5  Price of b=$15    MU of a=20    MU of b=?

Q: A household with strictly convex preferences may consume only one of two goods.

A: Strict convexity of preferences may be a stronger property than simply plain convexity. Preferences…

Q: Consider the following utility function: U= 4X+Y. A consumer faces prices of P,= $2 and P, =1. %3D…

A: Answer: Given, Utility function: U=4X+Y The formula of the marginal rate of substitution (MRS) is…

Q: Suppose that an agent has utility function u(x,y)=x+2y. What information is necessary to calculate…

A: Consumer’s utility function is given as U = x + 2y. Observing the utility function, one can say that…

Q: Suppose the function for the utility from good c is denoted as U(c)=2c1/2 .  Which of the following…

A: Given  Utility function:  U(c) = 2c1/2.    ..... (1) Where have to find marginal utility from good c

Q: Marginal utility can also become negative True/False

A: The additional utility which adds with more consumption of goods and services is called marginal…