Difference between marginal and total utility

Assignment Help Business Economics
Reference no: EM138296

Q. 1. What is the difference between marginal and total utility?

2. Can marginal utility be negative? Provide an example using your original thoughts and words.

3. Why is it not sufficient to just compare the marginal utility of two goods when maximizing utility?

4. Explain the income and substitution effects and use the concepts to describe what happens when the price of a product decreases.

5. Why would an ounce of gold be priced higher than an ounce of coffee beans though coffee is generally considered more essential than gold? Explain the paradox in terms of marginal and total utility.

Reference no: EM138296

Questions Cloud

Consumption change this year in absolute dollars : Explain how much does consumption change this year in absolute dollars as a result of a $5,000 annual tax cut to your income, if the tax cut.
Each company to make their choices : What are the advantages and disadvantages of each method. What do you suppose led each company to make their choices.
Value of net domestic product : What is the value of net domestic product (NDP)? What is the value of national income (NI).
Factors determine a wages of a person : Describe the determinants of varying levels of income. What factors determine a wages of a person
Difference between marginal and total utility : Why would an ounce of gold be priced higher than an ounce of coffee beans though coffee is generally considered more essential than gold
Quantity of economic investment : Illustrate what is the quantity of economic investment that has resulted from BBQ's actions
Affect the supply of beef : Explain how does this affect the supply of beef. Explain how does it affect the supply of beef worldwide.
What is the impact of the trade surplus or trade deficit : What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
The demand for electricity : the demand for electricity and the concept that nuclear is cleaner than coal and who the special interest groups are that's involved

Reviews

Write a Review

Business Economics Questions & Answers

  Cutting taxes instead of increasing spending

If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.

  Impact on the economy

Determine the impact on the economy if the central bank in U.S. used inflation targeting.

  Elucidate how the relative composition

Elucidate how the relative composition of M1 changed since 1965. Do your best to explain why this change has occurred.

  Impact of rational expectations

How would a downward change in the money supply affect you personally. How would it affect your career. What impact would rational expectations have on your decisions in this situation.

  Facility for a production plant

A facility for a production plant can be purchased for 155,000 with a down payment of 25,000.

  Monopoly necessarily bad public policy

Give an example of a government created monopoly. Is creating this monopoly necessarily bad public policy?

  Action monetary policymakers

Clarify what action monetary policymakers must take for the actions of fiscal policymakers to have no effect on real income.

  Short-run cost theory

Using short-run cost theory, explain the impact of this additional patient on the SAVC and SATC. Do they increase or decrease.

  Unemployment rate is at its highest level

The national economy has been in a slump for several years, but recent signs of strength in much of the economy have led many forecasters to conclude that an expansion could finally be in the offing.

  Analyst at the treasury department

As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe.

  Inflation is repudiation

The two economies are so far apart that they don't share ideas and each evolves as a separate roomer economy.

  Firms will decline if economic growth is reduced

Explain why Blazo's performance from providing these services to ABC Company and other firms will decline if economic growth is reduced.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd