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Marginal Utility

To say that you can't have too much of a good thing means that for any good that you enjoy (say pizza),
a. higher consumption will always lead to greater utility
b. higher consumption will cause utility to increase at an increasing rate
c. higher consumption will increase utility but only up to a point; after that utility will start to decrease
d. it is valid to measure utility in utils

my answer is d

Which of the following goods is most likely to display increasing marginal utility over some range?
a. chicken during the 1920s, when it was considered a luxury good
b. paint, which you need in an amount sufficient to paint at least one entire room
c. lobsters, which are so expensive that you must eat two to get your money's worth
d. all of the above

My answer is D

The principle of diminishing marginal utility means that when Sarah eats pizza, her satisfaction from the second slice of pizza is probably
a. greater than that from the first
b. equal to that from the first
c. less than that from the first
d. not comparable to that from the first

my answer is B ( at least that how I feel, I kind of see myself.)

Solution Preview

1) c. Not having too much of a good thing means that even though we love doing certain things like for example, going to the amusement park, after going on enough rides or spending enough time there, we will start getting tired ...

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