Explain difference between total and marginal utility. Define UTILITY. How do consumers maximize UTILITY?
explain the difference between total utility and marginal utility
Explain how monopoly causes an inefficient allocation of resources when the competitive firm does not even when both seek to maximize profits?
Producers are organisms that make their own food through photosynthesis or other reactions and are a food source for consumers, consumers are organisms that injest other organism to gain energy. Examples of consumers: herbivors, carnivors, and omnivors. Examples of Producers: grass, algae, and phytoplankton
Explain why a firm needs to know its short run production function to be able to calculate the costs of production?
Explain why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
Which type of organis producers primary consumers or secondary consumers would have the largest population Explain your choice?
If the marginal product of labor starts being negative explain what must be done to lead to increasing returns?
Why is it wrong to say utility is maximized when the marginal utilities of all goods are exactly equal correct the statement and explain?
Consumer Surplus = the difference between what consumers are willing to pay and what they actually pay for a good or service. It is hard to explain this thru formula as it require a long explanation and debrief. Essentially it is represented by a triangle, and the surplus is calculated thru the formula to calculate a Triangles height. That is (BASE x HEIGHT)/2 I have attached a link below. Please refer it for details.
The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output. Marginal cost and average cost can differ greatly. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost…
Equilibrium of Firm: MR - MC Approach Profit maximization is one of the important assumptions of economics. It is assumed that the entrepreneur always tries to maximize profit. Hence the firm or entrepreneur is said to be in equilibrium if the profit is maximized. According to Tibor Sitovosky "A market or an economy or any other group of persons and firms is in equilibrium when none of its member's fells impelled to change his behavior"…
We will use the utility theory to explain consumer demand and to understand the nature of demand curves. For this purpose, we need to know the condition under which I, as a consumer, am most satisfied with my market basket of consumption goods. We say that a consumer attempts to maximize his or her utility, which means that the consumer chooses the most preferred of goods from what is available. Can we see what a…