{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ 101 11th

# Econ 101 11th - The Slope at any point is on a indifference...

This preview shows page 1. Sign up to view the full content.

Econ 101 11th Marginal utility is per apple. Marginal is just another word for derivative.. Each succeeding apple gives less benefit. Marginal utility is the difference.. (which on the graph is measured by the height. Utilility (U) = root Qa + root Qb Independent unrelated objects U= root(Qa.Qb) Substitute Utilities U=min(Qa,Qb) You have to consume these things together (the right shoe left shoe example)
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The Slope at any point is on a indifference curve called the marginal rate of substitution. MRSab = -Qa/Qb =MUb/MUa Diminishing marginal Utility represents how much of one we are willing to give up of one object in exchange for another…. Apple for bananas...
View Full Document

{[ snackBarMessage ]}