WorksheetsMarginal Utility and Marginal Cost
Total questions: 11
Worksheet time: 6mins
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
The definition of the law of diminishing marginal utility
As more units are consumed the marginal utility falls.
As more units are consumed the marginal utility increases.
As price decreases quantity demanded increases.
As price increases consumers are willing to pay more.
The total utility definition states:
The usefulness, benefit or satisfaction a consumer gains from consuming a product.
The satisfaction gained from consuming a quantity of an economic good, measured in utils.
The added consumer satisfaction from consuming a quantity of a good.
The consumer's satisfaction from consuming a quantity of a good.
The relationship between demand and marginal utility is best explained as ...
the marginal utility a person gets from consuming a good determines their demand for the good.
the total utility a person gets from consuming a good determines their demand for the good.
the marginal utility a person gets from consuming a good determines their market demand for the good.
the total utility a person gets from consuming a good determines their market demand for the good.
Total utility is the benefit received from consuming an extra unit of a good.
TRUE
FALSE
If Ann gets 100 units of utility from reading a book and 500 units of utility from playing with her cat, What can we determine about Ann?
She does not enjoy reading books.
She does not enjoy playing with her cat.
She prefers reading a book to playing with her cat.
She prefers playing with her cat to reading a book.
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
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 units of utility
45 units of utility
11.25 units of utility
8 units of utility
What best reflects the goal of a consumer?
To acquire the largest possible quantity of goods.
To acquire the largest possible variety of goods.
To maximize utility.
To save money.
You made a good decision if:
Marginal cost is greater then marginal benefit
Marginal cost is less than marginal benefit
Marginal benefit is greater then marginal cost
Marginal benefit is less then marginal cost
If the marginal cost of something exceeds marginal benefit the marginal benefit becomes a:
mis-utilty
dis-utility
former utilty
ex-utility
