Question
Only need answer.Thank you According to our assumptions about utility, as more of a good is received Total utility decreases at an increasing rate Total
Only need answer.Thank you
According to our assumptions about utility, as more of a good is received
Total utility decreases at an increasing rate
Total utility increases at a decreasing rate
Marginal utility increases at a decreasing rate
Marginal utility decreases at a decreasing rate
Cindy has spent her entire income on groceries and has purchased bundle "A", which includes the purchase of multiple energy drinks and bags of potato chips.Suppose the marginal utility of her last energy drink purchase is 20, the marginal utility of her last potato chip bag purchase is 10, the price of each energy drink is $2, and the price of each potato chip bag is $1.50.How might have Cindy instead used her money to buy a bundle of goods with even greater total utility than bundle "A"?
Purchase less bags of chips, but the same amount of other goods
Purchase more energy drinks and less bags of chips
Purchase more bags of chips and less energy drinks
Purchase less energy drinks, but the same amount of other goods
Due to a drastic increase in the price of her college tuition, Chloe no longer goes out to eat at restaurants.This behavior would be the result of
Diminishing marginal utility
The income effect
Decreasing marginal returns
The substitution effect
Which of the following will generally be true about a utility-maximizing bundle of goods?
The marginal utility per dollar of the last units of each good purchased will roughly be equal
The marginal utility of the last units purchased of each good will roughly be equal
The lowest marginal utility per dollar goods will be purchased before the highest marginal utility per dollar goods
The highest marginal utility goods will be purchased before the lowest marginal utility goods
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