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What else can I help you with?
What is meant of consumer equilibrium?
consumers ability to have equal choices Added: Where a consumer makes choices about how much of a number of goods they will consume to maximise their total satisfaction (Utility).
Total utility derived from consumption of a commodity by a consumer will be?
Will Be maximum when its marginal utility is Zero.
What are differences between marginal utility and total utility?
Topic Marginal Utility Total Utility 1. Definition Marginal utility is the extra satisfaction which a consumer gets from consuming additional units of goods. Total utility is the sum of total satisfaction of a consumer derives from consumption of a particular good. 2. Feature It can be negative. It can't be negative. 3. Sloping It is downward sloping. It is upward sloping.
What are the assumptions of cardinal utility approach?
Primarily cardinal utility approach has 5 assumptions. 1 rationality: the consumer is rational about his spending. 2 cardinal utility: the utility/satisfaction can be measured in cardinal NOs like 10, 8, 15, 20etc 3 constancy of money: The money of consumer must remain constant. 4 diminishing marginal utility: Marginal/additional utility of consumer decreases along with successive use of any commodity. 5 total utility: Total utility depends on quantity of commodity. 3
What will be the total utility derived from the consumption of a commodity by a consumer will be if marginal utility is zero?
i don't know the answer. i think it may be minimum or maximum.
What is meant of consumer equilibrium?
consumers ability to have equal choices Added: Where a consumer makes choices about how much of a number of goods they will consume to maximise their total satisfaction (Utility).
Total utility derived from consumption of a commodity by a consumer will be?
Will Be maximum when its marginal utility is Zero.
What are differences between marginal utility and total utility?
Topic Marginal Utility Total Utility 1. Definition Marginal utility is the extra satisfaction which a consumer gets from consuming additional units of goods. Total utility is the sum of total satisfaction of a consumer derives from consumption of a particular good. 2. Feature It can be negative. It can't be negative. 3. Sloping It is downward sloping. It is upward sloping.
What are the assumptions of cardinal utility approach?
Primarily cardinal utility approach has 5 assumptions. 1 rationality: the consumer is rational about his spending. 2 cardinal utility: the utility/satisfaction can be measured in cardinal NOs like 10, 8, 15, 20etc 3 constancy of money: The money of consumer must remain constant. 4 diminishing marginal utility: Marginal/additional utility of consumer decreases along with successive use of any commodity. 5 total utility: Total utility depends on quantity of commodity. 3
What will be the total utility derived from the consumption of a commodity by a consumer will be if marginal utility is zero?
i don't know the answer. i think it may be minimum or maximum.
How can one determine the utility-maximizing bundle of goods?
To determine the utility-maximizing bundle of goods, an individual should allocate their budget in a way that maximizes their total satisfaction or utility. This can be achieved by comparing the marginal utility per dollar of each good and allocating spending to reach a point where the marginal utility per dollar is equal for all goods. This point is where the individual's budget constraint intersects with their indifference curve, representing the highest level of satisfaction given their budget and preferences.
What is average utility?
Average Utility is defined as the utility derived (or obttained) from the use of one unit of commodity. It is calculated by dividing the total number of utils by the number of units commodity is used by the consumer.
How does a consumer maximize total utility?
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
What will a rational consumer does?
A rational consumer is a consumer who hesitates to be satisfied with the little amount he has. A rational consumer, therefore tries to maximises inorder to get its total utility. He might not decide to draw a scale of preference because he has alimited resources.
Suppose the MUP for bottled water is greater than the MUP for chips To maximize total utility the consumer should buy?
chips
How do you calculate total utility?
Total utility(TU)= Average utility multiplied by quantity consumed.
How can one determine the total surplus at equilibrium in a market?
To determine the total surplus at equilibrium in a market, you can calculate the area of the triangle formed by the supply and demand curves. This area represents the total surplus, which is the sum of consumer surplus and producer surplus. Consumer surplus is the difference between what consumers are willing to pay and what they actually pay, while producer surplus is the difference between what producers are willing to accept and what they actually receive.
