Asked by
Stephen Banchi
on Nov 30, 2024
Verified
Which statement is true?
A) Total utility is maximized when marginal utility is zero.
B) The utility of a Big Mac is greater than the utility of a Whopper.
C) As one consumes more and more of a service,one's marginal utility rises.
D) None of these are true.
Total Utility
This is the aggregate level of satisfaction or value that consumers derive from consuming a given amount of goods or services.
Marginal Utility
The additional satisfaction or utility received by consuming one more unit of a good or service.
- Learn the effects of total and marginal utility on the decision-making process related to consumption.
- Familiarize oneself with the effects of marginal utility on decision-making in the pursuit of maximizing utility.
Verified Answer
AK
Learning Objectives
- Learn the effects of total and marginal utility on the decision-making process related to consumption.
- Familiarize oneself with the effects of marginal utility on decision-making in the pursuit of maximizing utility.
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