micro ch 10

Consumers have to make tradeoffs in deciding what to consume because

they are limited by a budget constraint.

If a consumer receives 22 units of marginal utility for consuming the first can of​ soda, 20 units from consuming the​ second, and 15 from the​ third, the total utility of consuming the three units is

57 utility units.

Which of the following is likely to occur as the result of the law of diminishing marginal​ utility?

Wesley enjoyed his second bottle of iced tea less than his first​ bottle, other things constant.

Consumers maximize total utility within their budget constraint by

buying the goods with the largest marginal utility per dollar spent.

As a consumer consumes more and more of a product in a particular time​ period, eventually marginal utility

declines

marginal utility is the

extra satisfaction received from consuming one more unit of a product.

total utility

is equal to the sum of the marginal utilities of all units consumed

Economists assume that the goal of consumers is to

make themselves as well off as possible.

utility is

subjective and cannot be measured

​If, as a person consumes more and more of a​ good, each additional unit adds less satisfaction than the previous unit​ consumed, we are seeing the workings of

the law of diminishing marginal utility.

If a consumer always buys goods​ rationally, then

the marginal utility per dollar spent on all goods will be equal.

Marginal utility can be

​positive, negative, or zero.