Marginal Utility

I get less enjoyment out of each additional can of soda I drink. What does this represent?

• Law of Diminishing Utility/Return

• Capital

• Margin

• Scarcity

What is a rational decision?

• One where the Marginal Benefit is equal to or greater than Marginal Cost

• One where the marginal benefit is less than marginal cost

• Anything that I do

• One that makes absolutely no sense

What is Marginal Benefit/Utility?

• The cost of any good

• The satisfaction that a consumer gets from each subsequent addition

• The total cost of a given decision

What is a util?

• Something that measures the total cost of an activity

• A rational decision

• an imaginary unit of measurement representing the amount of utility a good provides

• An imaginary animal

If Ann gets 100 units of utility from reading a book and 500 units of utility from playing with her cat, we know that Ann

• does not enjoy reading books

• does not enjoy playing with her cat

• prefers reading a book to playing with her cat

• prefers playing with her cat to reading a book

The first four dinner rolls Joan consumes have total utility of 15, 27, 37, and 45 respectively. What is the marginal utility of the 4th dinner roll?

• 124 Utils

• 45 Utils

• 11.25 utils

• 8 utils

What's the marginal utility of the 2nd good?

• 210

• 120

• 90

• -90

What's the marginal utility of the 7th good?

• -30

• -240

• 247

• 30

What's the marginal utility of the 1st good?

• 90

• 120

• 210

• 30

As more of a good is consumed, total utility

• Increases

• Decreases

• Remains the same

• Becomes negative then turns positive