If Jack is a utility maximizer, shouldn't a fall in the price of popcorn cause an increase in his marginal utility of popcorn?

What will be an ideal response?

No. If the price of popcorn drops, Jack will buy more popcorn. With diminishing marginal utility, his total utility from popcorn will increase but his marginal utility from popcorn will fall.

Economics

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In monopolistic competition, firms compete on product quality, price and marketing

Indicate whether the statement is true or false

Economics

Conflicts can arise between divisions because

a. some activities across divisions benefit from coordination b. managers of profit centers care too little about the effects of their decisions on other divisions c. managers are rewarded only for how well their own division is run d. all of the above

Economics