We use cookies to give you the best experience possible. By continuing weâ€™ll assume youâ€™re on board with our cookie policy

# The progress of studies

The whole doc is available only for registered users
• Pages: 5
• Word count: 1058
• Category: Education

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

?Section 3 1- The word “utility” means a) quantity demanded. c) demand. b) benefit or satisfaction. d) goal. 2- The benefit that John gets from eating an additional grape is called the a) quantity demanded. c) demand. b) total utility. d) marginal utility. 3- Marginal utility is the change in total utility that results from a) an increase in the consumer’s income. b) a one-unit change in the quantity of a good consumed. c) a decrease in the price of the good. d) an increase in the price of the good. – If the total utility of 2 bags of chips is 25, the total utility of 3 bags is 33, and the total utility of 4 bags is 40 units, then the marginal utility of the 3rd and 4th bags are a) 12. 5 and 11, respectively. b) 8 and 7, respectively. c) 11 and 10, respectively. d) 33 and 40, respectively. 5- Diminishing marginal utility means that an increase in the consumption of a good leads to a) an increase in marginal utility. b) an increase in the consumer’s budget. c) a decrease in marginal utility. d) a decrease in total utility. 6- State whether the following statements are true or false. Justify your answer. ) Total utility of X decreases as we increase consumption of X. False b) Marginal utility represents total utility divided by the quantity consumed. False c) If Total utility increases from 100 to 110 as I increase my consumption of X by 1 unit then MU must be 10. True 7- The table above gives Matt’s utility from consuming slices of pizza. His marginal utility from the 3rd slice is a) 9 units. c) 11 units. b) 5 units. d) 27 units. 8- The table above gives Matt’s utility from consuming slices of pizza. His marginal utility from the 4th slice is a) 30 units. c) 7. 5 units. b) 23. 5 units. d) 3 units. – The table above gives Matt’s utility from consuming slices of pizza. As Matt consumes more slices of pizza, he a) obtains less total utility. b) has diminishing total utility. c) has unchanging marginal utility. d) has diminishing marginal utility. 10- All other things being equal, it is assumed that the consumer always prefers ___________ of a commodity than ____________.

Marginal Utility of cola Units of pretzels Marginal Utility of pretzels 1 40 1 30 2 32 2 20 3 24 3 16 4 16 4 12 5 12 5 6 Assume the price of cola is \$4 per unit and the price of pretzels is \$2 per unit. a) What is the condition of maximizing consumer’s utility? b) What is the optimal combination of these goods? Jim spends all hisÂ income on pizza and burgers. Currently, he is maximizing his utility, and the marginal utility of pizza is 200 and the marginal utility of burgers is 150. If pizza costs \$6 per unit, how much do burgers cost?

##### Related Topics

We can write a custom essay

Order an essay
300+
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
Checker
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

Sorry, but only registered users have full access

immediately?

Thank You A Lot!

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?