Question 1

-Given the above figure, marginal utility becomes negative when Joey consumes the ________ piece of pizza.

Accepted Answer

Marginal utility becomes negative when the consumption of an additional unit decreases overall satisfaction. This typically occurs after a certain point of consumption, often referred to as the point of diminishing returns. In this context, it is the 5th piece of pizza that causes marginal utility to become negative.

Question 2

-In the above table, what is the marginal utility of the sixth slice of pizza consumed?

Accepted Answer

Marginal utility is the change in total utility from consuming one additional unit. If the total utility decreases by 17 when the sixth slice is consumed, the marginal utility is -17.

Question 3

What is the relationship between marginal utility and total utility? What happens to total utility as marginal utility declines?

Accepted Answer

The answer of What is the relationship between marginal utility...

Question 4

-In the above table, what is the marginal utility of the second slice of pizza consumed?

Accepted Answer

The marginal utility is the additional satisfaction gained from consuming one more unit of a good. If the total utility from the first slice is 50 and from the second slice is 90, the marginal utility of the second slice is 90 - 50 = 40.

Question 5

If a dinner guest is serious when claiming he just could not get enough of your lasagna and that the more he ate the more he wanted, you would conclude that for him the marginal utility of lasagna was

Accepted Answer

The guest's statement indicates that he experienced increasing marginal utility. As he consumed more lasagna, his desire for additional lasagna increased. This is suggestive of the pattern of increasing marginal utility.

Question 6

"As an individual consumes more units of a good, her total utility falls because of the law of diminishing marginal utility." Do you agree or disagree? Explain.

Accepted Answer

The answer of "As an individual consumes more units of...

Question 7

-Using the above table, what is the total utility of consuming 3 bottles of soda?

Accepted Answer

The answer of 
-Using the above table, what is the...

Question 8

-Refer to the above figures. Amy's total utility for chocolate chip cookies reaches a maximum at 4 cookies. Which panel best represents marginal utility?

Accepted Answer

The answer of 
-Refer to the above figures. Amy's total...

Question 9

-Given the above figure, if Joey was a rational consumer he would NOT eat more than ________ piece(s) of pizza.

Accepted Answer

A rational consumer will consume up to the point where marginal benefit equals marginal cost. If the figure shows that the marginal benefit of the 5th piece is less than the marginal cost, Joey should not eat more than 4 pieces.

Question 10

If marginal utility is zero,

Accepted Answer

When marginal utility is zero, it means the consumer has reached the point of maximum satisfaction or total utility. Any further consumption of the good will not increase their satisfaction, so they will not consume more even if the price is zero. This is why option D is not correct. Option A is incorrect because if total utility is increasing at a decreasing rate, it means that marginal utility is positive but decreasing. Option B is incorrect because if total utility is increasing at an increasing rate, it means that marginal utility is positive and increasing, which is not possible when marginal utility is zero.

Question 11

-Given the above figure, when Joey eats a third piece of pizza his marginal utility is ________ and his total utility is ________.

Accepted Answer

When Joey eats a third piece of pizza, his marginal utility is falling because each additional piece provides less satisfaction than the previous one, but his total utility is rising as he is still gaining overall satisfaction from eating more pizza.

Question 12

When marginal utility is positive, but decreasing, then total utility is

Accepted Answer

When marginal utility is positive but decreasing, it means that each additional unit is providing less satisfaction than the previous one. However, the total utility is still increasing because the added units are providing some level of satisfaction. This increase in total utility, though, is happening at a decreasing rate since the marginal utility is decreasing. Therefore, the best choice is A: increasing at a decreasing rate.

Question 13

If a person claims, "I wouldn't eat liver if you paid me," we can assume that his marginal utility of liver is

Accepted Answer

The statement indicates that the person has a negative marginal utility of liver, meaning that the additional satisfaction he would receive from consuming liver would be less than the negative experience of consuming it.

Question 14

-Refer to the above figures. Which panel best represents marginal utility?

Accepted Answer

The answer of 
-Refer to the above figures. Which panel...

Question 15

The principle that "as more of a good is consumed, its extra benefit declines" is known as

Accepted Answer

The principle that "as more of a good is consumed, its extra benefit declines" is known as the law of diminishing marginal utility. It states that as a consumer increases consumption of a good or service, the satisfaction derived from each additional unit of the good or service decreases.

Question 16

-In the above table, what is the marginal utility of the fourth slice of pizza consumed?

Accepted Answer

The marginal utility is the additional utility gained from consuming one more unit of a good. If the total utility from consuming the third slice is 120 and the total utility from consuming the fourth slice is 130, the marginal utility of the fourth slice is 130 - 120 = 10.

Question 17

-Using the above table, what is the total utility of consuming 2 bottles of soda?

Accepted Answer

Without a table provided, I used general knowledge about utility in economics, which typically involves adding the utility values of individual units consumed. Since specific numbers can't be derived from a non-existent table, the correct answer cannot be determined from the given options without the actual data. However, in a typical scenario, if consuming one bottle of soda provides a certain utility, consuming two would add up to a total utility that reflects the sum of the utilities provided by each bottle.

Question 18

Which of the following statements is not true about marginal utility when total utility is at its maximum point?

Accepted Answer

Marginal utility cannot be undefined as it measures the additional utility gained from consuming an additional unit. At the point where total utility is at its maximum, marginal utility will be zero, indicating that the consumer is no longer receiving any additional satisfaction from consuming additional units. A rational consumer will not consume additional units beyond this point as it would lead to a decrease in total utility. Marginal utility will be decreasing as the consumer consumes additional units, but it will reach zero at the maximum point of total utility.

Question 19

If the price of a good is zero, a rational consumer will

Accepted Answer

A rational consumer will consume the good until total utility is maximized, as consuming beyond that point would not increase their satisfaction.

Question 20

-Using the above table, what is the marginal utility of the 4th soda?

Accepted Answer