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What would be a situation in which there would be decreasing marginal utility?
Wiki User
∙ 9y ago
Buying a new car when you already have two cars.
ordering a second dessert when your're already full
Curt Eichmann
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What if the following describes a situation in which there would be a decreasing marginal utility?
Buying a second winter coat.
Describe a situation in which there would be decreasing marginal utility?
A situation in which there would be decreasing marginal utility would be:buying a new car when you already have two carsBuying a second winter coatordering a second dessert when you're already full
What describes a situation in which there would be decreasing marginal utility?
Buying a new car when you already have two cars. ordering a second dessert when your're already full
What describes a situation which there would be decreasing marginal utility?
The Law of Diminishing Returns is one of the powerful laws in economics. The Law of Economies of Scale is another law of similar importance. [And in that order IMHO]
When would the total utility of a good and the marginal utility of a good be the same?
total utility and marginal utility are the same for the first unit of good consumed.
What if the following describes a situation in which there would be a decreasing marginal utility?
Buying a second winter coat.
Describe a situation in which there would be decreasing marginal utility?
A situation in which there would be decreasing marginal utility would be:buying a new car when you already have two carsBuying a second winter coatordering a second dessert when you're already full
What's a situation in which there would be decreasing marginal utility?
Buying a new car when you already have two cars. ordering a second dessert when your're already full
What describes a situation in which there would be decreasing marginal utility?
Buying a new car when you already have two cars. ordering a second dessert when your're already full
What describes a situation which there would be decreasing marginal utility?
The Law of Diminishing Returns is one of the powerful laws in economics. The Law of Economies of Scale is another law of similar importance. [And in that order IMHO]
When would the total utility of a good and the marginal utility of a good be the same?
total utility and marginal utility are the same for the first unit of good consumed.
How would you answer someone who says that marginal utility theory is useless because utility cannot be observed?
How would you answer if someone says that “marginal utility theory is useless because utility cannot be observed”?
What describes a situation in which there would be decreasing maginal utility?
buying a second winter coat
What is the difference between marginal utility and marginal benefit?
I think this is the answer, based off my textbook, "Microeconomics" by Zupan and Browning. Marginal benefit is the "...maximum amount the consumer would pay for an additional unit" of some good. The height of the demand curve can be interpreted as showing the marginal benefit of some good. Marginal utility is the amount that total utility rises when consumption increases by one unit. For example if total utility for one scoop of ice cream is 10 units and totality utility for the second scoop of ice cream is 15 units, marginal utility measures the difference, 5 units, between the two.
Explain the relationship between total utility and marginal utility?
Total Utility can mean the total amount of satisfaction gained from the purchase or consumption of a product. Marginal Utility is the amount of satisfaction gained from purchasing or consuming more of the same product. For Example: If you purchased two slices of Pizza, Your total utility would be the satisfaction you receive from consuming both slices. Your marginal utility would be the satisfaction you gained consuming an additional slice (i.e. The difference between consuming two slices versus one slice) Typically your marginal utility decreases as your consumption increases. For Example: If you have eight pizzas, one extra slice is not likely to bring you as much satisfaction as a second slice would if you only had one slice of pizza (as opposed to eight pizzas).
Price equals marginal utilty?
Generally, yes. Marginal utility is the utility one gets out of "one more" of a good. For instance, if I have no food, my marginal utility of a loaf of bread is extremely high, so I will pay (price) a huge amount of money for it. On the other hand, if I have a pantry full of loafs of bread, my marginal utility for a loaf of bread would be very low, and I wouldn't buy bread unless it was extremely cheap.
What does the law of marginal diminishing utility say?
That the more times one uses an object or item, the less enjoyment (utility) he/she gets out of it. For example if you were to eat pizza every night, the marginal law of diminishing utility says that you would slowly lose enjoyment from it and would most likely be sick of it pretty soon
