Chapter 6 - Chapter6:ConsumerChoice 9/16/105:02PM utility:

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Chapter 6: Consumer Choice  9/16/10 5:02 PM utility: the enjoyment or satisfaction people receive from receiving goods and  services  we assume the goal of consumers is to spend their income in such a way that  you max your personal utility  marginal benefit   marginal utility (MU) the ∆ in total utility (TU) a person receives from consuming one additional unit  of a good or service  Law of Diminishing MU  The principle that consumers experience diminishing satisfaction (MU) as  they consumer more of a g/s over a fixed period of time  o Increase in Q   decrease in MU  Debbie preference for scones  # scones    TU    MU    ∆TU/∆Q 0                 0      / 1               20      20 2               28      8 3               34      6
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This note was uploaded on 10/03/2011 for the course ECON 2020 taught by Professor Kaplan,jul during the Spring '08 term at Colorado.

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Chapter 6 - Chapter6:ConsumerChoice 9/16/105:02PM utility:

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