lesson5 - 1. William Jevons developed the algebraic basis...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. William Jevons developed the algebraic basis of marginal utility theory to find the maximized total utility (pleasure) with a given income. 2. In consuming the 3 rd through the 7 th unit, the Marginal Utility increases at a decreasing rate (marginal utility decreases from 80 to 5). 3. As we spend more money our total pleasure increases to a maximum point, but with additional increases in spending our marginal utility (additional pleasure) never actually declines. ( False ) 4. In the Indifference Diagram above, Points H, I and J represent combinations of consumption for A and B that will yield the same amount of additional pleasure. ( False ) 5. In the field of Marketing the concepts of marginal values and marginal utility per dollar are important ideas for brand comparisons among goods and services. ( True ) 6. In the field of Marketing the concepts of marginal values and marginal utility per dollar are not used for brand comparisons because measuring “pleasure” is difficult. ( False ) 7. The marginal utility initially increases at a(n) increasing rate (marginal utility increases from 50 to 90). 8. In the Indifference Diagram below, each of the curved lines X, Y, and Z represent combinations of consumption for A and B that will yield the same amount of additional pleasure. ( True ) 9. As we spend more money our total pleasure increases to a maximum point, but with additional increases in spending our marginal utility (additional pleasure) declines. ( True ) 10. In the 1800’s Jeremy Bentham concluded that consumers seek maximum pleasure (called utility in economics) with minimum cost expenditure. 11. In the early 1830’s
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/18/2011 for the course ECON 2301 taught by Professor Newbury during the Spring '10 term at Richland Community College.

Page1 / 3

lesson5 - 1. William Jevons developed the algebraic basis...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online