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Unformatted text preview: 7-1(Key Question) Complete the following table and answer the questions below:Units consumedTotal utilityMarginal utility12345610___2530___34108______3___a.At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know?b.A rational consumer will purchase only 1 unit of the product represented by these data, since that amount maximizes marginal utility. Do you agree? Explain why or why not.c.It is possible that a rational consumer will not purchase any units of the product represented by these data. Do you agree? Explain why or why not.Missing total utility data top bottom: 18; 33. Missing marginal utility data, top bottom: 7; 5; 1.(a) A decreasing rate; because marginal utility is declining.(b) Disagree. The marginal utility of a unit beyond the first may be sufficiently great (relative to product price) to make it a worthwhile purchase. Consumers are interested in maximizing totalutility, not marginal utility....
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