Purchase Solution

Diminishing, Increasing and Constant Marginal Utility

Not what you're looking for?

Ask Custom Question

For each of the following situations, decide whether Al has increasing, constant, or diminishing marginal utility.

a. The more economics classes Al takes, the more he enjoys the subject. And the more classes he takes, the easier each one gets, making him enjoy each additional class even more than the one before.
b. Al likes loud music. In fact, according to him, "the louder, the better." Each time he turns the volume up a notch, he adds 5 utils to his total utility. --- this one is Constant
c. Al enjoys watching old episodes of the sitcom Friends. He claims that old episodes are always funny, but he does admit that the more he sees an episode, the less funny it gets.

Purchase this Solution
Solution Summary

The solution discusses diminishing, increasing and constant marginal utility.

Solution Preview

a- This one is increasing marginal utility because the more of each unit he consumes the more enjoyment he gets out of it ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • diminishing marginal utility

    361364 Diminishing marginal utility Prove that a diminishing marginal rate of substitution neither implies nor is implied by diminishing marginal utility. First, I shall remind you that MRS = MUx/MUy, where MUx is the marginal utility of good x.

  • Diminishing marginal concept

    Response explains the diminishing marginal concept, diminishing marginal utility in consumption and diminishing returns in production.

  • Demand, Production, Cost, Market Equilibrium,

    C- exhibits constant returns to scale and diminishing marginal productivities for K and L D- exhibits diminishing returns to scale and constant marginal productivities for K and L 13.

  • What is the theory of diminishing marginal utility?

    127451 What is the theory of diminishing marginal utility? Discuss how, why (and whether) consumer demand for gasoline changes when the price of gasoline falls.

  • Multiple Choice Questions: Utility Theory

    James's marginal utility per dollar will rise *******b. James's marginal utility per dollar will fall********* Diminishing marginal utility. c. James's marginal utility per dollar will stay constant d. James's total utility will fall 5.

  • Diminishing marginal utility implies

    C) total utility is negative. D) total utility is increasing. E) marginal utility of a good diminishes over time.

  • Marginal cost of inputs and average cost

    79622 Diminishing returns and marginal cost of inputs more input than the average cost of inputs? If I increase the amount of pizza that I serve why will you experience diminishing returns?

  • Marginal Utility

    Which of the following goods is most likely to display increasing marginal utility over some range?

  • The law of diminishing returns and the business

    v=M7rA4VfvdAw Reference: Maps of the World Finance, http://finance.mapsofworld.com/savings/factors/diminishing-return.html Youtube.com, Law of Diminishing Marginal utility, http://www.youtube.com/watch?

View More Related Solutions