Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 6, Problem 16SQ
To determine
Implication of not maximizing the utility.
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Students have asked these similar questions
How does the law of diminishing marginal utility relate to changing income?
Select one:
a. The marginal benefit of an extra dollar of income rises as income rises.
b. The marginal benefit of an extra dollar of income falls as income rises.
c. The total utility gained from a small income is higher than the total utility gained from a high income.
d. The total utility gained from a high income is higher than the total utility gained from a low income.
When Marietta chooses to only purchase a combination of goods that lie within her budget line, she:
a. likely has negative savings.
b. is maximizing utility.
c. is decreasing utility.
d. must reduce the quantity.
According to the law of diminishing marginal utility:
a. as you consume less of something, your total utility will decrease.
b. as you consume less of something, your marginal utility from consuming that good will increase
c. you should never consume more of something if your marginal utility is decreasing.
d. If your total utility is increasing as you consume more of something, then your marginal utility must be increasing as well.
Chapter 6 Solutions
Micro Economics For Today
Ch. 6.1 - Prob. 1YTECh. 6.1 - Prob. 2YTECh. 6.2 - Prob. 1YTECh. 6.A - Prob. 1SQPCh. 6.A - Prob. 2SQPCh. 6.A - Prob. 3SQPCh. 6.A - Prob. 1SQCh. 6.A - Prob. 2SQCh. 6.A - Prob. 3SQCh. 6.A - Prob. 4SQ
Ch. 6.A - Prob. 5SQCh. 6.A - Prob. 6SQCh. 6.A - Prob. 7SQCh. 6.A - Prob. 8SQCh. 6.A - Prob. 9SQCh. 6.A - Prob. 10SQCh. 6.A - Prob. 11SQCh. 6.A - Prob. 12SQCh. 6.A - Prob. 13SQCh. 6.A - Prob. 14SQCh. 6.A - Prob. 15SQCh. 6 - Prob. 1SQPCh. 6 - Prob. 2SQPCh. 6 - Prob. 3SQPCh. 6 - Prob. 4SQPCh. 6 - Prob. 5SQPCh. 6 - Prob. 6SQPCh. 6 - Prob. 7SQPCh. 6 - Prob. 8SQPCh. 6 - Prob. 9SQPCh. 6 - Prob. 10SQPCh. 6 - Prob. 1SQCh. 6 - Prob. 2SQCh. 6 - Prob. 3SQCh. 6 - Prob. 4SQCh. 6 - Prob. 5SQCh. 6 - Prob. 6SQCh. 6 - Prob. 7SQCh. 6 - Prob. 8SQCh. 6 - Prob. 9SQCh. 6 - Prob. 10SQCh. 6 - Prob. 11SQCh. 6 - Prob. 12SQCh. 6 - Prob. 13SQCh. 6 - Prob. 14SQCh. 6 - Prob. 15SQCh. 6 - Prob. 16SQCh. 6 - Prob. 17SQCh. 6 - Prob. 18SQCh. 6 - Prob. 19SQCh. 6 - Prob. 20SQCh. 6 - Prob. 21SQCh. 6 - Prob. 22SQCh. 6 - Prob. 23SQCh. 6 - Prob. 24SQCh. 6 - Prob. 25SQ
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Similar questions
- According to the law of diminishing marginal utility, marginal utility of a good declines as more of it is consumed in a given time period. According to this law, which of the following statement is true? a. The more I go to school, the more I want to do something else b. Since we need gasoline more than we need paper, gasoline is more valuable c. Peas give me no satisfaction, so I won't buy any d. The more coffee I drink, the more I want to drinkarrow_forwardWhich of the following statement is true?A. Marginal Utility is the additional satisfaction gained by the consumer in consuming the first glass of water.B.The value of a glass of water to a consumer depends on its average revenue.C.The marginal utility of pearl is higher than water.D.The additional utility of consuming one more glass of water is greater than buying one more pearl.arrow_forwardAccording to the law of diminishing marginal utility, what happens as a consumer consumes more units of a good? A. Total utility increases at a decreasing rate.B. Marginal utility increases at a decreasing rate.C. Total utility decreases at an increasing rate.D. Marginal utility decreases at an increasing rate.arrow_forward
- Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2. Mr. Max has only $20 to spend. If the marginal utility of the fourth unit of A is 12 and the marginal utility of the sixth unit of B is 12, then: a. he should not buy anything. b. he should buy more of A and less of B. c. he should buy less of A and more of B. d. he should buy A and B in the quantities indicated. e. he should buy more of A and little more than that of B.arrow_forward1. If the consumer can only buy product x, how much will the consumer buy and what will be the total utility? 2.If the consumer buys both product x and product y, how much will the consumer buy of each to maximize utility? 3.When the consumer purchases the utility-maximizing combination of product x and product y, what is the total utility?arrow_forwardComplete the following table and answer the questions below: a. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? b. “A rational consumer will purchase only 1 unit of the product represented by these data since that amount maximizes marginal utility.” Do you agree? Explain why or why not.c. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not.arrow_forward
- Activity 1. Answer the following questions: a. Illustrate and explain how consumer equilibrium is achieved using the indifference curve? b. How do we measure utility? Explain. c. Discuss how the demand elasticity of a product changes? Give examples.arrow_forward#16. Joanna is deciding between consuming Good X and Good Y. At her current level of consumption, her marginal utility per dollar for Good X is greater than the marginal utility per dollar for Good Y. To achieve the consumer optimum, Joanna needs to a. consume more of Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X. b. consume more of Good X until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X. c. consume more of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X. d. consume more of Good X or less of Good Y until the marginal utility per dollar for Good X and Good Y is equal. e. continue at her current level of consumption.arrow_forward#10. Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy bars and ice cream until the a. marginal utility of each decreases. b. marginal utility of each becomes negative. c. total utility of each becomes negative. d. marginal utility of candy bars and ice cream bars is equal. e. total utility of candy bars and ice cream bars is equal.arrow_forward
- Along an individual demand curve for food, which one of the following is not held constant? a.The consumer's income b.The consumer's level of utility c.The price of all other goods d.The consumer's utility functionarrow_forwardWhich statement BEST describes the principle of diminishing marginal utility? As an individual consumes more of a good: Select one: a. the marginal utility will eventually become negative. b. the total utility obtained will eventually become negative. c. the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good. d. the total utility obtained will eventually fall.arrow_forwardWhich situation is consistent with the law of diminishing marginal utility? a. Paul's marginal utility from eating burgers reaches a maximum when total utility is zero. b. The more burgers Paul eats, the more he enjoys another burger c. Paul's marginal utility from eating burgers becomes positive after eating three burgers. d. The more burgers Paul eats, the less he enjoys another burgerarrow_forward
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