Which of the following correctly distinguishes the concepts of marginal utility and total utility?
a. Marginal utility is inversely related to the number of goods consumed, while total utility is directly related to the number of goods consumed.
b. Marginal utility is directly related to the number of goods consumed, while total utility is inversely related to the number of goods consumed.
c. Marginal utility is the total satisfaction provided by the consumption of a good, while total utility is the additional amount of satisfaction received from the consumption of an additional unit of a good.
d. Total utility is always a positive value, while marginal utility is always a negative value.
a
You might also like to view...
A loan used as an investment turns out to be profitable if the sale price of its output covers the _____ of all other inputs and interest on the funds loaned
a. internal costs b. marginal cost c. opportunity cost d. average cost
Suppose workers from group A have an average productivity of $15 per hour and that employers have a productivity test that is 100% accurate 1/3 of the time, but has no value 2/3 of the time. What is the best estimate of the VMP of a worker from group A with a test score of $21 per hour?
A. $18 B. $21 C. $13 D. $17