Chapter7.Practiceexercises_KeyAnswers

Chapter7.Practiceexercises_KeyAnswers - CHAPTER 7 Consumer...

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CHAPTER 7 Consumer Choice and Utility Maximization 1.A product has utility if it: A) takes more and more resources to produce successive units of it. B) violates the law of demand. C) satisfies consumer wants. D) is useful. Ans: C 2.Utility refers to the: 3.Which of the following statements is correct? 4.The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi:
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5.Marginal utility: A) is equal to total utility divided by the number of units consumed. B) is equal to total utility if the demand curve is linear. C) increases as more of a product is consumed. D) diminishes as more of a product is consumed. Ans: D 6.Where total utility is at a maximum, marginal utility is:
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