Two people buying the same quantity of a good at the same price do not have the same marginal utility .

Question

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Answer 1

Question

Chapter 10, Problem 1P

To determine

Two people buying the same quantity of a good at the same price do not have the same marginal utility.

Expert Solution & Answer

Explanation of Solution

Relative comparison of two different people satisfaction is not possible. Two people consuming the same quantity of good at the same price can have different satisfaction level according to their interest, so they cannot have the same marginal utility. Interpersonal utility comparison is not possible.

Economics Concept Introduction

CONCEPT INTRODUCTION:

Marginal utility:

Marginal utility measures the additional fulfilment a customer earns from expending extra units of products or services. The idea of marginal utility is utilized by financial specialists to decide the amount of a thing customers are eager to buy. Positive marginal utility happens when the utilization of an extra thing builds the all-out utility, while negative marginal utility happens when the utilization of an extra thing diminishes the absolute utility.

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Students have asked these similar questions

How do your total and marginal utility change as you stay at home watching the same TV show (not necessarily the same episode) alone all day?

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

Answer 2

Question

Chapter 10, Problem 1P

To determine

Two people buying the same quantity of a good at the same price do not have the same marginal utility.

Expert Solution & Answer

Explanation of Solution

Relative comparison of two different people satisfaction is not possible. Two people consuming the same quantity of good at the same price can have different satisfaction level according to their interest, so they cannot have the same marginal utility. Interpersonal utility comparison is not possible.

Economics Concept Introduction

CONCEPT INTRODUCTION:

Marginal utility:

Marginal utility measures the additional fulfilment a customer earns from expending extra units of products or services. The idea of marginal utility is utilized by financial specialists to decide the amount of a thing customers are eager to buy. Positive marginal utility happens when the utilization of an extra thing builds the all-out utility, while negative marginal utility happens when the utilization of an extra thing diminishes the absolute utility.

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Answer 3

Question

Chapter 10, Problem 1P

To determine

Two people buying the same quantity of a good at the same price do not have the same marginal utility.

Expert Solution & Answer

Explanation of Solution

Relative comparison of two different people satisfaction is not possible. Two people consuming the same quantity of good at the same price can have different satisfaction level according to their interest, so they cannot have the same marginal utility. Interpersonal utility comparison is not possible.

Economics Concept Introduction

CONCEPT INTRODUCTION:

Marginal utility:

Marginal utility measures the additional fulfilment a customer earns from expending extra units of products or services. The idea of marginal utility is utilized by financial specialists to decide the amount of a thing customers are eager to buy. Positive marginal utility happens when the utilization of an extra thing builds the all-out utility, while negative marginal utility happens when the utilization of an extra thing diminishes the absolute utility.

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Answer 4

Question

Chapter 10, Problem 1P

To determine

Two people buying the same quantity of a good at the same price do not have the same marginal utility.

Expert Solution & Answer

Explanation of Solution

Relative comparison of two different people satisfaction is not possible. Two people consuming the same quantity of good at the same price can have different satisfaction level according to their interest, so they cannot have the same marginal utility. Interpersonal utility comparison is not possible.

Economics Concept Introduction

CONCEPT INTRODUCTION:

Marginal utility:

Marginal utility measures the additional fulfilment a customer earns from expending extra units of products or services. The idea of marginal utility is utilized by financial specialists to decide the amount of a thing customers are eager to buy. Positive marginal utility happens when the utilization of an extra thing builds the all-out utility, while negative marginal utility happens when the utilization of an extra thing diminishes the absolute utility.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1P

To determine

Two people buying the same quantity of a good at the same price do not have the same marginal utility.

Expert Solution & Answer

Explanation of Solution

Relative comparison of two different people satisfaction is not possible. Two people consuming the same quantity of good at the same price can have different satisfaction level according to their interest, so they cannot have the same marginal utility. Interpersonal utility comparison is not possible.

Economics Concept Introduction

CONCEPT INTRODUCTION:

Marginal utility:

Marginal utility measures the additional fulfilment a customer earns from expending extra units of products or services. The idea of marginal utility is utilized by financial specialists to decide the amount of a thing customers are eager to buy. Positive marginal utility happens when the utilization of an extra thing builds the all-out utility, while negative marginal utility happens when the utilization of an extra thing diminishes the absolute utility.

Answer 6

Chapter 10, Problem 1P

To determine

Two people buying the same quantity of a good at the same price do not have the same marginal utility.

Expert Solution & Answer

Explanation of Solution

Relative comparison of two different people satisfaction is not possible. Two people consuming the same quantity of good at the same price can have different satisfaction level according to their interest, so they cannot have the same marginal utility. Interpersonal utility comparison is not possible.

Economics Concept Introduction

CONCEPT INTRODUCTION:

Marginal utility:

Marginal utility measures the additional fulfilment a customer earns from expending extra units of products or services. The idea of marginal utility is utilized by financial specialists to decide the amount of a thing customers are eager to buy. Positive marginal utility happens when the utilization of an extra thing builds the all-out utility, while negative marginal utility happens when the utilization of an extra thing diminishes the absolute utility.

Answer 7

Chapter 10, Problem 1P

To determine

Two people buying the same quantity of a good at the same price do not have the same marginal utility.

Answer 8

Expert Solution & Answer

Explanation of Solution

Relative comparison of two different people satisfaction is not possible. Two people consuming the same quantity of good at the same price can have different satisfaction level according to their interest, so they cannot have the same marginal utility. Interpersonal utility comparison is not possible.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

CONCEPT INTRODUCTION:

Marginal utility:

Marginal utility measures the additional fulfilment a customer earns from expending extra units of products or services. The idea of marginal utility is utilized by financial specialists to decide the amount of a thing customers are eager to buy. Positive marginal utility happens when the utilization of an extra thing builds the all-out utility, while negative marginal utility happens when the utilization of an extra thing diminishes the absolute utility.

Answer 12

Ch. 10 - Prob. 1P Ch. 10 - Prob. 2P Ch. 10 - Prob. 3P Ch. 10 - Prob. 4P Ch. 10 - Prob. 5P Ch. 10 - Prob. 6P Ch. 10 - Prob. 7P Ch. 10 - Prob. 8P Ch. 10 - Prob. 9P Ch. 10 - Prob. 10P

Two people buying the same quantity of a good at the same price do not have the same marginal utility .

Two people buying the same quantity of a good at the same price do not have the same marginal utility.

Explanation of Solution

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Chapter 10 Solutions