Question 1

-Refer to the above table. The marginal utility of the 5th movie for Robert is

Accepted Answer

The marginal utility is the change in total utility from consuming one more unit. If the total utility from the 4th movie is 240 and from the 5th movie is 300, the marginal utility of the 5th movie is 300 - 240 = 60 units.

Question 2

Sam loves cookies. She receives 200 utils for one cookie, 360 for two cookies, 480 for the third, 560 for four cookies, and 600 for five cookies. The marginal utility of the third cookie is

Accepted Answer

The marginal utility of the third cookie is the additional utility received from consuming the third cookie, which is the difference in total utility between consuming three cookies and two cookies: 480 - 360 = 120 utils.

Question 3

A well-known athlete loves cupcakes. He receives 200 utils for the first cupcake, an additional 160 for the second, an additional 120 for the third, another 80 for the fourth, and another 40 for the fifth. The marginal utility of the fourth cupcake is ________ and the total utility of consuming four cupcakes is ________.

Accepted Answer

The marginal utility of the fourth cupcake is 80, and the total utility of consuming four cupcakes is the sum of the utils from each cupcake: 200 + 160 + 120 + 80 = 560.

Question 4

In cardinal utility analysis

Accepted Answer

In cardinal utility analysis, numerical values can be assigned to represent the utility derived from consuming a good or service. This allows for more precise calculations and analysis compared to ordinal utility analysis which only ranks preferences without assigning specific numerical values. Additionally, the concept of marginal utility exists in both cardinal and ordinal utility analysis and there is no guarantee that marginal utility always increases with additional consumption.

Question 5

-Refer to the above table. The marginal utility of the 2nd movie for Robert is

Accepted Answer

The answer of 
-Refer to the above table. The marginal...

Question 6

Karen has decided that she would enjoy eating another cookie. Which of the following statements is consistent with Karen's decision?

Accepted Answer

Karen's decision to eat another cookie suggests that her total utility has increased, as she derives additional satisfaction from consuming more. However, it is unclear whether her marginal utility has increased or decreased, as it depends on her subjective valuation of the additional cookie.

Question 7

The rate of change in total utility equals

Accepted Answer

Marginal utility represents the change in total utility that results from consuming one additional unit of a good or service, thus directly correlating with the rate of change in total utility.

Question 8

A representative unit by which utility is measured is

Accepted Answer

A util is a hypothetical unit of measurement used in economics to quantify the amount of utility or satisfaction a consumer derives from consuming goods and services.

Question 9

-Refer to the above table. The marginal utility of the 8th movie for Robert is

Accepted Answer

The marginal utility of the 8th movie for Robert is 30 units of utility. This is because the total utility of watching 8 movies is 420 units, and the total utility of watching 7 movies is 390 units. Therefore, the marginal utility of the 8th movie is 420 - 390 = 30 units.

Question 10

-Refer to the above table. The marginal utility of the 5th movie for Michelle is

Accepted Answer

The marginal utility is the additional utility gained from consuming one more unit. If the table shows that the total utility for 4 movies is 340 and for 5 movies is 390, the marginal utility for the 5th movie is 390 - 340 = 50 units.

Question 11

At a ball game we can observe people eating hot dogs, chips, and burgers. If all are priced the same and we observe Michelle eating a hot dog and David eating a hamburger, we can conclude that

Accepted Answer

We know that Michelle is eating a hot dog and David is eating a hamburger, but we cannot conclude anything about what Robert is eating. Option B is not necessarily true, as they may have different preferences or simply chose to eat different things that day. Option C is also not necessarily true, as they may derive different amounts of utility from different foods. Option D is the best choice because it is possible that Michelle and David both had the option to choose any of the three foods, but they each chose the one that provided the most utility to them at that particular time.

Question 12

John has just eaten another potato chip and his total utility increased. This means that John's marginal utility for this additional potato chip is

Accepted Answer

The fact that John's total utility increased indicates that his marginal utility for the additional potato chip was positive.

Question 13

-Refer to the above table. The marginal utility of the 7th movie for Michelle is

Accepted Answer

The marginal utility of the 7th movie is the additional utility gained from watching the 7th movie compared to the 6th. If the table shows that the total utility for 6 movies is 420 and for 7 movies is 435, the marginal utility is 435 - 420 = 15 units.

Question 14

Marginal utility is

Accepted Answer

Marginal utility refers to the additional utility a consumer gains from consuming an additional unit of a good. It is not the utility received by the last consumer (A), nor is it the total utility divided by the number of units consumed (B). It is also not the utility received from only the first unit (D).

Question 15

Juan and Sophia have decided to stop studying economics and get a bite to eat. Juan wants to go for a pizza and Sophia wants a hamburger. They decide to go for pizza. What can we conclude from this?

Accepted Answer

Sophia preferred a hamburger over pizza, indicating she would derive more utility from a hamburger than from pizza.

Question 16

John has just eaten another potato chip and his total utility decreased. This means that John's marginal utility for this additional potato chip is

Accepted Answer

The decrease in total utility indicates that the marginal utility of the additional potato chip was negative.

Question 17

The analysis of consumer decision making based on utility maximization is known as

Accepted Answer

The analysis of consumer decision making based on utility maximization is known as utility analysis.

Question 18

-Refer to the above table. What is the marginal utility for the 10th unit for Michelle and for Robert?

Accepted Answer

The answer of 
-Refer to the above table. What is...

Question 19

-Refer to the above table. The marginal utility of the 6th movie for Michelle is

Accepted Answer