HW 04/08 weekend

As an individual consumes an additional good or servce, their satisfaction decreases

• Marginal Utility

• Law of Diminishing Marginal Utility

• Utility

• Negative Utility

Total amount of satisfaction I get from consuming G or S or doing an activity

• Total Utility

• Marginal Utility

• Utility

• Negative Utility

Utility is the

• benefit or satisfaction that a person gets from the consumption of a good or service
• measure of how useful a resource is in the production process
• measure of productivity associated with a good or service
• economic term for consumption possibilities

As more of a good is consumed, total utility

• increases
• decreases
• remains the same
• becomes negative and then turns positive

As more of a good is consumed, marginal utility

• increases

• decreases

• remains the same

• becomes negative and then turns positive

The first four Apples Hassan consumes have total utility of 15, 27, 37, and 45 respectively. What is the marginal utility of the 4th Apple?

• 124 units of utility

• 45 units of utility

• 11.25 units of utility

• 8 units of utility

Which decreases first as more of a good is consumed?

• total utility
• average utility
• marginal utility
• marginal physical product

Which of the following is true if consuming one unit of a good yields 100 utils and consuming the second unit of the good increases satisfaction by 20 utils?

• the MU of the 1st unit is 20
• the MU of the 2nd unit is 80
• the MU of the 2nd unit is 120
• the total utility of consuming 2 units is 120

Definition of Marginal Utility

• the satisfaction from consumption

• to total satisfaction from consuming a product

• the extra satisfaction from the last unit consumed

• the extra consumption from last unit consumed

Total Utility is at maximum when marginal utility equals

• 0

• 1

• 2

• 3