7.1

What is marginal utility?

Why is it challenging for consumers to purchase fractional quantities of goods?

What characterizes the utility-maximizing condition for consumers?

Which of the following statements about total utility is correct?

What happens to marginal utility as a consumer consumes more of a good or service?

What is the definition of utility in economics?

What is the difference between total utility and marginal utility?

What does the law of diminishing marginal utility state?

What hypothetical device did Francis Edgeworth propose to measure utility?

What does maximizing utility imply for consumers?

How is total utility defined?

What does the term 'utility-maximizing condition' refer to?

What is suggested about the utility of a good like a peach?

What is the maximum total utility that Mr. Higgins achieves from attending movies?

Which best describes the relationship between total utility and the number of movies Mr. Higgins sees?

What does marginal utility represent in the context of Mr. Higgins's movie consumption?

At what point does the marginal utility of Mr. Higgins's movie consumption become zero?

What does the downward slope of the marginal utility curve indicate about Mr. Higgins’s consumption of movies?

What would happen if the law of diminishing marginal utility did not hold?

When Mr. Higgins watches his first movie, what is the increase in his total utility?

If Mr. Higgins sees 3 movies, what will be his total utility?

What does the total utility curve indicate when it becomes horizontal?

What trend does the marginal utility curve typically display?

Which of the following statements is true regarding consumer behavior as per the maximization of utility?

What is the key principle behind the law of diminishing marginal utility?

Given Mr. Higgins’s total utility curve, how does he maximize his satisfaction?

What does the budget constraint imply for Mr. Higgins in terms of his consumption choices?

How should consumers decide between spending on two goods according to the marginal decision rule?

What is the calculation for the utility gained by spending an additional dollar on good X?

What happens to the marginal utility of good X as a consumer consumes more of it?

When does utility maximization occur in terms of the ratios of marginal utility to price?

If Mr. Higgins wants to increase his utility, what must he do according to the content?

What does the term 'divisibility' imply in the context of applying the marginal decision rule?

What does it mean when the marginal utility gained from good X is greater than that from good Y?

What is suggested by the condition at which the marginal benefit and marginal cost are equal?

Which of the following best describes the function of a budget constraint?

When a shopper decides to spend more on ice cream than cookies, what principle are they following?

How do consumers generally respond to a change in the price of a good?

In what scenario would borrowing or saving alter the budget constraint?

What does the concept of marginal utility imply about consumer preferences?