ECON 402 exam 2 study set || with A+ Guaranteed Solutions.
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Course
ECON 402
Institution
ECON 402
Marginal utility is defined as the correct answers change in total utility a person derives from the consumption of a good divided by the change in the quantity of the good consumed.
Suppose you are eating buffalo wings at a local happy hour. The total utility from doing so after the fourth, fif...
ECON 402 exam 2 study set || with A+ Guaranteed
Solutions.
Marginal utility is defined as the correct answers change in total utility a person derives from the
consumption of a good divided by the change in the quantity of the good consumed.
Suppose you are eating buffalo wings at a local happy hour. The total utility from doing so after
the fourth, fifth, sixth, and seventh wings are 80, 116, 136, 150, respectively. The marginal
utility of the sixth wing is __________ . correct answers 20
Which of the following is true?
- Marginal utility is the same as total utility.
- It is possible for total utility to rise as marginal utility falls.
- As marginal utility rises, total utility may fall.
- As marginal utility falls, total utility always falls. correct answers It is possible for total utility
to rise as marginal utility falls.
Suppose you just finished your third plateful of Thanksgiving dinner and it yielded zero units of
additional satisfaction. Should you go back for more? correct answers No way. You could get
negative utility from the fourth plateful.
Suppose the marginal utility (MU) of a paperback books is 60 and each book costs $10, while the
MU of a hamburger is 50 and each costs $7.50. If you consume one movie and buy one
hamburger per week, are you attaining consumer equilibrium?
Yes, so there is no need to change. correct answers No. You need to buy more hamburgers and
fewer books to move toward consumer equilibrium.
Ari is currently consuming 10 hot dogs and 8 hamburgers per week. The last hot dog she
consumed yielded 20 utils while the last hamburger she ate gave her 25 utils. If hot dogs cost $2
and hamburgers cost $2.50, is Ari consuming the correct quantities of these two goods to be in
consumer equilibrium? correct answers Yes, so there is no need to change her consumption.
Suppose a consumer is purchasing Coke and pretzels in quantities such that she is achieving
consumer equilibrium. Then the price of Coke decreases. The consumer will likely __________
her consumption of Coke and the marginal utility of Coke will __________ while the total utility
from Coke will __________. correct answers increase; decrease; increase
Suppose Valerie is consuming lipstick (L) and eye shadow (E) and nothing else. MUL = 40 and
MUE = 36. The price of eye shadow is $9, and the price of lipstick is $15. What should Valerie
do? correct answers Consume more eye shadow and less lipstick.
If the marginal utility of a good is negative, then correct answers consumers should buy less of it.
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