Food and Resource Economics 3

Food and Resource - Food and Resource Economics Homework 3 Abby Kelly Questions for Thought and Review 1 Marginal utility and total utility deal

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Food and Resource Economics Homework 3 Abby Kelly Questions for Thought and Review 1. Marginal utility and total utility deal with the same concept, which is how much satisfaction one gets from a good. Where they differ is marginal utility refers to the satisfaction one gets form consuming one additional unit of a product above and beyond what one has consumed up to that point. Whereas, total utility is the total satisfaction one gets from consuming a product. 2. The principle of diminishing marginal utility states that after some point the marginal utility received from each additional unit of good decreases with each addition unit consumed all other things equal. Therefore the marginal utility of each additional unit consumed is less than the one before, and vice versa. 3. If the principle did not hold true in the real world it would mean that the consumers where not acting rationally and their choices had no logic behind them. 5.
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This note was uploaded on 04/21/2008 for the course AEC Food and r taught by Professor Daniel during the Spring '08 term at Mississippi State.

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Food and Resource - Food and Resource Economics Homework 3 Abby Kelly Questions for Thought and Review 1 Marginal utility and total utility deal

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