Question

In: Economics

What is total utility? What is marginal utility? Give examples of how to calculate total utility...

What is total utility?

What is marginal utility?

Give examples of how to calculate total utility and marginal utility.

What’s the law of diminishing marginal utility?

Give an example of using the formula MUx/Px = MUy/Py.

Expert Solution

1.If we talk in simple terms then total utility is the sum of all the marginal utility that is derived by the consumers for consuming any good or service

It is generally expressed in utils

Utils is generally called satisfaction that is derived by consuming any good or service

Total utility is generally considered under the rational choice theory and law of diminishing marginal utility

2

Marginal utility in simple terms is the additional utility that is derived by consuming one extra additional unit of good or service

marginal utility is calculated is the ratio of change utility divided to change in quantity consumed

4.

Law of diminishing marginal utility in simple terms can be said for any person who consumes any goods or service then the satisfaction derived decreases as the consumption rises

it is applicable for normal goods

it is also called that marginal utility of a good or service decline as its supply increases

3.

Rahul Sunny answered 2 years ago

7. What is total utility and marginal utility? How do they affect the real world? Give...

7. What is total utility and marginal utility? How do they affect the real world? Give example.

Give examples of how to calculate total revenue, total cost, variable cost, fixed cost, marginal cost,...

Give examples of how to calculate total revenue, total cost, variable cost, fixed cost, marginal cost, ATC, AFC, and AVC. What is the water-diamond paradox?

The marginal utility of the BD Marginal utility Total benefit units The marginal utility of the...

The marginal utility of the BD Marginal utility Total benefit units The marginal utility of the BD Marginal utility Total benefit units 0 0 0 0 51 1 78 1 90 2 120 2 123 3 156 3 150 4 186 4 171 5 210 5 183 6 228 6 192 7 245 7 198 8 260 8 201 9 267 9 Solve the table below and question: If you know the price of the good X = 6 dinars,...

Quantity of Product A Total Utility Marginal Utility Quantity of Product B Total Utility Marginal Utility...

Quantity of Product A Total Utility Marginal Utility Quantity of Product B Total Utility Marginal Utility 1 16 16 1 30 30 2 30 14 2 46 16 3 42 12 3 61 15 4 52 10 4 75 14 5 60 8 5 88 13 6 66 6 6 100 12 7 70 4 7 111 11 Please refer to the table above. The price of Product A is $1 and the price of Product B is $3. How...

Total and marginal utility for bread and cereal Quantity (loaves of bread) Total Utility Marginal Utility...

Total and marginal utility for bread and cereal Quantity (loaves of bread) Total Utility Marginal Utility Marginal Utility per Dollar ($4) Quantity (boxes of cereal) Total Utility Marginal Utility Marginal Utility per Dollar ($4) 0 0 0 0 1 70 1 50 2 125 2 90 3 165 3 120 4 190 4 140 5 200 5 160 1. The table below contains data about your food budget, and assumes you have $20 to spend. Fill out the entire table,...

Describe the relationship between total utility and marginal utility. Explain if marginal utility can be negative....

Describe the relationship between total utility and marginal utility. Explain if marginal utility can be negative. Examine the diamond-water paradox. Why are diamonds more expensive than water? Evaluate the law of diminishing marginal utility. Identify some items, explaining your reasoning, that do not follow the law of diminishing marginal utility. Evaluate how the law of diminishing marginal utility can explain the diamond-water paradox. No plagiarism please 250-300 words.

Fill in the following table, graph marginal and total utility of pizza and the total and marginal utility of beer and answer the following questions:

MICROECONOMICSFill in the following table, graph marginal and total utility of pizza and the total and marginal utility of beer and answer the following questions:QuantityOf beersTotal UtilityOf beerMarginal Utility of beerNumber of slices of pizzasTotal utility of pizzaMarginal utility of pizza00--------00---------13612022423831835449341459951269460If you have a budget of $10 and the pizza and beers cost $2 each, what is the consumer optimum?What if the price of beer increases to $3, but the price of pizza remains the same and your budget goes...

What is the marginal utility when total utility increases from 34 to 42 after consumption of...

What is the marginal utility when total utility increases from 34 to 42 after consumption of 1 unit? A) 2 B) 4 C) 6 D) 8 Calculate total utility based on the following information; Unit 1 Marginal Utility = 9 Unit 1 Marginal Utility = 8 Unit 1 Marginal Utility = 4 Unit 1 Marginal Utility = 1 A) 22 B) 23 C) 24 D) 25 Calculate accounting profit using the following data: Explicit costs = $40,000 Implicit costs =...

Explain how Utility, Marginal Utility, and Diminishing Marginal Utility concepts relate to a yes or no...

Explain how Utility, Marginal Utility, and Diminishing Marginal Utility concepts relate to a yes or no decision to implement the Keystone XL Pipeline project.

Take Jeremy’s total utility information in question #1, and use it to calculate marginal utilities. Now,...

Take Jeremy’s total utility information in question #1, and use it to calculate marginal utilities. Now, using only the information from the marginal utilities, start at the upper left-hand corner of the table given in problem (1) and explain why the optimal choice is the same as it was in the previous problem. Calculate the marginal utilities and verify the rule that at the optimal choice, P1 /P2 = MU1 / MU2. (Or in this case, that it is as...