Practice Law Of Diminishing Marginal Utility (2.1.1.2)

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6 sample questions

Question 1.
What is marginal utility?
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Think about the satisfaction from each extra unit you consume.
Question 2.
How does total utility differ from marginal utility?
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Consider how you quantify satisfaction.
3Question 3.
What happens to marginal utility as more units of a good are consumed?
- It increases
- It decreases
- It remains constant
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Consider your enjoyment of a food item as you consume more.
4Question 4.
True or False: Total utility can decrease as more units are consumed.
- True
- False
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Think about the overall satisfaction derived.
Question 5.
A consumer has a utility function of U(x) = 10x - x^2. Calculate the marginal utility for x=5.
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Use calculus to derive the marginal utility.
Question 6.
If the price falls but the consumer continues to purchase the same quantity, how does that relate to marginal utility?
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Think about consumer rationality in choices.

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