You maximize utility when marginal utility divided by the price of product A is equal to the marginal utility divided by the price of product B.
MUa/Pa=MUb/Pb
or MUa/MUb= Pa/Pb
Negative
In basic economic theory, an agent's utility is maximized by finding the point on the agent's budget line that gives the highest utility. This is done by taking the first order derivative of both the budget line and the utility function and finding at what point they are equal. This is the consumption bundle.
yes
Utility is only consider as maximized when the last dollar spent on each goods are equal. or v can say ( when the marginal utility of the last dollar spent on each good is exactly the same as the marginal utility of the last dollar spent on any other good ) .
Total utility(TU)= Average utility multiplied by quantity consumed.
Negative
mp = 0
In basic economic theory, an agent's utility is maximized by finding the point on the agent's budget line that gives the highest utility. This is done by taking the first order derivative of both the budget line and the utility function and finding at what point they are equal. This is the consumption bundle.
yes
yes
Utility is only consider as maximized when the last dollar spent on each goods are equal. or v can say ( when the marginal utility of the last dollar spent on each good is exactly the same as the marginal utility of the last dollar spent on any other good ) .
Total utility(TU)= Average utility multiplied by quantity consumed.
explain the difference between total utility and marginal utility
Unit elastic
If marginal utility is positive will you have total utility increase with additional consumption?
marginal utility is zero
marginal utility decreases