Marginal utility
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Q1: Exercise and Total Utility
The table below shows a consumer's total utility from consuming hours of exercise at the gym.
Given this information, what can be said about this consumer's marginal utility curve for exercise?
A) Marginal utility initially decreases, but eventually increases as more exercise is consumed.
B) Marginal utility always decreases as more exercise is consumed.
C) Marginal utility initially increases, but eventually decreases as more exercise is consumed.
D) Marginal utility initially increases, but eventually stays constant as more exercise is consumed.
Q2: Consider the following bundles of two ordinary goods, X and Y. Can you rank them from the one that provides the most utility to the least? Explain your reasoning.
Q3: Why is the market for soybeans a better example of perfect competition than the market for cars? Discuss explain your answers.
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Solution Summary
Marginal utility is demonstrated.
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Microeconomic Econ 205 Homework # 4
Q1: Exercise and Total Utility
The table below shows a consumer's total utility from consuming hours of exercise at the gym.
Given this information, what can be said about this consumer's marginal utility curve for exercise?
A) Marginal utility initially decreases, but eventually increases as more exercise is ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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