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Questions and Answers
According to the law of diminishing marginal utility, what happens to the marginal utility as the consumer consumes more units of a commodity?
According to the law of diminishing marginal utility, what happens to the marginal utility as the consumer consumes more units of a commodity?
- It fluctuates.
- It decreases. (correct)
- It increases.
- It remains constant.
How is the law of diminishing marginal utility represented graphically in Figure 1.3?
How is the law of diminishing marginal utility represented graphically in Figure 1.3?
- As a horizontal line.
- As a downward-sloping curve. (correct)
- As an upward-sloping curve.
- As a straight line.
Which of the following is NOT an assumption for the application of the law of diminishing marginal utility?
Which of the following is NOT an assumption for the application of the law of diminishing marginal utility?
- Change in consumer's taste and preference.
- Continuous consumption of a commodity.
- Consumption of exactly the same commodity.
- Consumption of different qualities of a commodity. (correct)
Under what condition does the law of diminishing marginal utility operate according to the text?
Under what condition does the law of diminishing marginal utility operate according to the text?
In Figure 1.4, what does the downward trend in marginal utility of orange juice imply?
In Figure 1.4, what does the downward trend in marginal utility of orange juice imply?
Which of the following is NOT a condition for the application of the law of diminishing marginal utility?
Which of the following is NOT a condition for the application of the law of diminishing marginal utility?
What is the primary focus of utility analysis?
What is the primary focus of utility analysis?
Which of the following statements about utility is true?
Which of the following statements about utility is true?
What is the relationship between utility and morality?
What is the relationship between utility and morality?
Which of the following is a fundamental concept for marginal utility analysis?
Which of the following is a fundamental concept for marginal utility analysis?
What does total utility (TU) represent?
What does total utility (TU) represent?
How is marginal utility (MU) defined?
How is marginal utility (MU) defined?
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