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Unformatted text preview: income (answer a) 3. Diminishing marginal utility means that an increase in the consumption of a good leads to a) a decrease in total utility. b) a decrease in marginal utility. c) an increase in marginal utility. d) no change in marginal utility. e) a negative marginal utility. Answer: b (by definition) 4. The table above gives Matt's utility from consuming slices of pizza. His marginal utility from the 4th slice is a) 30 units. b) 1 unit. c) 94 units. d) 28.5 units. e) 3 units. Marginal utility from 4th slice = Total utility with 4th slice total utility with 3rd slice = 30 27 = 3. (answer e)...
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This note was uploaded on 03/24/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07