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ECON 402 - SECOND EXAM || A+ GUARANTEED.
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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...

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  • August 16, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
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  • marginal utility is defined as the

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  • ECON 402
  • ECON 402

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ECON 402 - SECOND EXAM || A+ GUARANTEED.
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?

a) as marginal utility rises, total utility may fall
b) it is possible for total utility to rise as marginal utility falls
c) as marginal utility falls, total utility always always falls
d) marginal utility is the same as total utility correct answers it is possible for the 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 book is 60 and each book costs $10, while the
MU of a hamburger is 50 and each costs $7.50. If you consume one book and buy one
hamburger per week, are you attaining consumer equilibrium? 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 lost hot dog 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 eyeshadow 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

Suppose that a consumer purchases a combination of X and Y such that MUX/PX = 15 utils per
dollar and MUY /PY = 10 utils per dollar. To maximize utility, the consumer should buy correct
answers more of X and less of Y

, the marginal utility of the third plum is...

1 - 22
2 - 34
3 - 44
4 - 52
5 - 57 correct answers 10

in this example, marginal utility

1 - 22
2 - 34
3 - 44
4 - 52
5 - 57 correct answers constantly diminishes

total utility for the first two oranges is

1 - 20
2 - 16
3 - 13
4 - 11
5 - 8 correct answers 36

total utility for the first four oranges is

1 - 20
2 - 16
3 - 13
4 - 11
5 - 8 correct answers 60

Don receives 100 utils from consuming two oranges. The utility he derives from consuming the
second orange equals 30 utils. The information provided correct answers is consistent with the
law of diminishing marginal utility

Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, how
many apples and oranges, respectively, does she purchase per week if she wants to maximize her
utility?

apples
0-0
1-15
2-28
3-39
4-48

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