Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
20th Edition
ISBN: 9780077660819
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 7, Problem 1RQ
To determine
The law of diminishing marginal utility and consumption behavior.
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Students have asked these similar questions
30
Taylor's marginal utility from watching movies and from eating out (in utils) is shown in the accompanying table. Taylor spends exactly $100 every month on these two forms of entertainment; the price of each movie is
$10 and the price of each dinner is $20.
Movies Marginal Utility
Per Month
Per Movie
1
2
3
4
Multiple Choice
O 4; 6; 2
O 3:2; 6
If Taylor eats out 3 times a month, Taylor will watch
O 4; 6; 1/2
60
50
20
O 3; 4; 4
5
Dinners Out Marginal Utility
Per Month
Per Dinner
1
2
3
4
150
140
120
100
movies, and have marginal utility per dollar of
from eating out and a marginal utility per dollar of
from going to the movies.
0 2
O 4
6
08
D
Scones
10
1
2
3
4
5
Total Utility
10
18
24
Refer to Table 6.3, which shows the total utility and marginal utility derived from the consumption of
scones. The first column of the table represents the number of scones a consumer consumes in a day. The
second column of the table presents the total utility derived from that consumption, and the third column
shows the marginal utility of each additional scone. The total utility derived from the consumption of one
scone is units.
28
30
Marginal Utility
6
2
Chapter 7 Solutions
Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
Ch. 7.1 - Prob. 1QQCh. 7.1 - Prob. 2QQCh. 7.1 - Prob. 3QQCh. 7.1 - Prob. 4QQCh. 7.A - Prob. 1ADQCh. 7.A - Prob. 2ADQCh. 7.A - Prob. 3ADQCh. 7.A - Prob. 1ARQCh. 7.A - Prob. 2ARQCh. 7.A - Prob. 1AP
Ch. 7.A - Prob. 2APCh. 7.A - Prob. 3APCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7P
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- Answer the question on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $3 and $4, respectively, and that the consumer's income is $25 Units of L 1 2 3 4 5 Multiple Choice O Total Utility Units of M 9 O What level of total utility does the rational consumer realize in equilibrium? 51 utils 86 utils 162 utils 15 18 20 21 58 utils 1 2 3 4 5 Total Utility 16 28 36 40 42arrow_forwardTABLE 6-1 Quantity (burgers) Total Utility Marginal Utility 0. 1 20 20 44 24 X 22 4. 84 y Refer to Table 6-1. The table shows Antonio's total and marginal utility from eating burgers. What is the marginal utility that Antonio gets from eating the 4th burger (y)? O 22 18 16 20arrow_forwardThe table below shows the utility schedule for a consumer of candy bars. Candy Bars Consumed 0 1 2 3 4 5 6 7 Total Utility 0 5 9 12 14 15 15 13 Based on the data in the above table you can conclude that the Multiple Choice O total utility of 2 units is 4 utils. marginal utility of the fourth unit is 14 utils. marginal utility of the third unit is 4 utils. marginal utility of the sixth unit is O utils.arrow_forward
- The table shows the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $6 and the price of product Y is $2. The income of the consumer is $30. MU x MUy Units of X Units of Y 72 1 24 66 20 3 60 3 16 4 48 4 12 30 When the consumer purchases the utility-maximizing combination of product X and product Y, total utility will be. O76 O 356 96 156 306 86 2. 2.arrow_forwardJohn 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 workarrow_forwardLouis is trying to decide what combination of cups and plates to buy. His budget is $12. Plates cost $4 each and cups cost $2 each. The numbers in the table represent total utility. Given his budget, which combination will maximize total utility? number of plates and cups.arrow_forward
- 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? Supposethat 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?arrow_forward3. Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup, no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee? *use tables and/or graphs if possible, please original workarrow_forward48 aces How big would that budget have to be before he would spend a dollar buying a first cup of coffee? Instructions: Enter your answer as a whole number. here to search Suppose that Omar's marginal utility for each additional cup of coffee is 2.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. O Saved II Help 4 Sawarrow_forward
- Jill likes to consume coffee and cream in a very particular way: with every cup ofcoffee she always consumes two 0.5 oz. cream containers. Jill is a utility maximizer anddecides to spend her income is $120 per month on coffee and cream. If the price of eachcoffee cup is $2.50, and the price of each cream container is $0.25, she will consume______ cups of coffee and ______ cream containers per month.A) 48; 96.B) 96; 48.C) 240; 480D) 80; 40E) None of the above.arrow_forwardWhen diminishing returns are present in consumption, the relationship between total utility and marginal utility is as follows: O Total utility increases at a decreasing rate while marginal utility decreases Total utility increases at an increasing rate while marginal utility increases Total utility increases at an increasing rate while marginal utility decreases Total utility decreases at a decreasing rate while marginal utility increasesarrow_forwardA consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 63 and the marginal utility of product Beta is 40. The price of product Alpha is $9, and the price of product Beta is $5. The utility-maximizing rule suggests that, to stay within a given budget constraint, this consumer should Multiple Choice O O O increase consumption of product Beta and increase consumption of product Alpha. make no change in the consumption of Alpha or Beta. increase consumption of product Beta and decrease consumption of product Alpha. increase consumption of product Alpha and decrease consumption of product Beta.arrow_forward
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