What is the difference between total utility and marginal utility?
What will be an ideal response?
Total utility is the total amount of satisfaction obtained from the consumption of a
good or a service. Marginal utility is the additional satisfaction gained by the
consumption of one more unit of a good or service.
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Which of the following statements is true?
A) A worker who shirks work is not an economic agent. B) All economic agents are necessarily individuals. C) A government is an example of an economic agent. D) A street gang is not an economic agent.
Which of the following is a reason for firms to bundle products?
A. To clear the old stock of the product B. To extract additional profit from a customer base with heterogeneous product demand C. To increase customer welfare and satisfaction D. To extract additional profit by charging higher prices for the goods in a bundle