Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What does 'marginal utility' refer to?
What does 'marginal utility' refer to?
- The total satisfaction gained from consuming a good or service
- The average satisfaction gained from consuming a good or service
- The satisfaction gained from the first unit of a good or service
- The additional satisfaction gained from consuming one more unit of a good or service (correct)
In economics, what is the primary concept behind marginal utility?
In economics, what is the primary concept behind marginal utility?
- Market equilibrium and competition
- Consumer preferences and decision-making (correct)
- Producer costs and revenue
- Government regulation and taxation
How does marginal utility change as more units of a good or service are consumed?
How does marginal utility change as more units of a good or service are consumed?
- It increases, reflecting increasing marginal utility
- It decreases, reflecting diminishing marginal utility (correct)
- It becomes negative, reflecting negative marginal utility
- It remains constant, reflecting constant marginal utility
What impact does the concept of marginal utility have on pricing strategies?
What impact does the concept of marginal utility have on pricing strategies?
Signup and view all the answers
What is the primary focus of consumer behaviour?
What is the primary focus of consumer behaviour?
Signup and view all the answers
How does marginal utility impact consumer decision-making?
How does marginal utility impact consumer decision-making?
Signup and view all the answers
How does marginal utility change as more units of a good or service are consumed?
How does marginal utility change as more units of a good or service are consumed?
Signup and view all the answers
What do economists primarily consider when analyzing consumer decisions?
What do economists primarily consider when analyzing consumer decisions?
Signup and view all the answers
