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Along an indifference curve,A.the marginal utility/price ratios of all items are equal.B.the total satisfaction is the same.Your answer is correct.C.the marginal utility of all items is equal.D.the prices of all goods are equal.A rational individual will never consume a unit of a good if itsYour answer is not correct.
The reason that diamonds cost more than water isUsing the table at right, what is the marginal utility of the 4th soda?
15The campus bookstorebookstore sells a CDCD for $1212. When you buy a second CDCD, however, its price is only $88. How does this relate to marginal utility?A.Since marginal utility falls as additional units of the good are consumed, consumers are only willing to purchase more as the price falls.Your answer is correct.B.As more is consumed, the marginal utility increases so consumers are willing to purchase more at higher prices.C.The cost of a CDCD becomes cheaper as more are consumed.D.Increases in total utility from the consumption of CDCDs become larger as more is consumed so consumers will pay more.A consumer will achieve the highest level of utility possible when she consumes