Marginal Utility and Marginal Cost

Front

Definition of Marginal Utility

Back

the extra satisfaction from the last unit consumed

Front

The definition of the law of diminishing marginal utility

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As more units are consumed the marginal utility falls.

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The total utility definition states:

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The consumer's satisfaction from consuming a quantity of a good.

Front

Total utility is the benefit received from consuming an extra unit of a good.

Back

FALSE

Front

Which of the following best refers to the additional cost a person or firm incur to produce one more unit? Consumer Benefit, Intersection, Marginal Benefit, Marginal Cost

Back

Marginal Cost

Front

What is the marginal utility of the 4th dinner roll if the total utility of the first four rolls is 15, 27, 37, and 45 respectively?

Back

8 units of utility

Front

You made a good decision if: Marginal cost is greater then marginal benefit, Marginal benefit is greater then marginal cost, Marginal benefit is less then marginal cost

Back

Marginal benefit is greater then marginal cost

Front

What is the marginal benefit of one more gallon of gas, when you currently have 0 gallons?

Back

5, 5.00, Five, five, $5

Front

What is the marginal benefit of one more gallon of gas, when you currently have 4 gallons?

Back

2, $2, two, Two, 2 utils

Front

What is the marginal benefit of one more gallon of gas, when you currently have 2 gallons?

Back

4, $4, four, Four, 4 utils