Which of the following statements is correct?Multiple ChoiceTotal utility is the change in marginal utility as quantity consumed increases.Total utility is the product of multiplying price times marginal utility.Total utility is the sum of marginal utilities.Marginal utility is the sum of total utility.
Question
Which of the following statements is correct?Multiple ChoiceTotal utility is the change in marginal utility as quantity consumed increases.Total utility is the product of multiplying price times marginal utility.Total utility is the sum of marginal utilities.Marginal utility is the sum of total utility.
Solution
The correct statement is: "Total utility is the sum of marginal utilities."
Here's why:
Total utility refers to the total satisfaction a consumer gets from consuming a certain quantity of goods or services. It is the aggregate sum of satisfaction or benefit that an individual gains from consuming a given amount of goods or services in an economy.
On the other hand, marginal utility is the additional satisfaction a consumer gets from consuming one more unit of a good or service. It is the change in total utility that comes from consuming one additional unit of a good or service.
Therefore, total utility is the sum of marginal utilities because it is the accumulation of all the additional satisfactions (marginal utilities) a consumer gets from consuming units of a good or service.
Similar Questions
The marginal utility associated with eating one sub sandwich is 5 utils. The marginal utility of a second sandwich is 3 utils. In this case total utility _______ with the consumption of the second sandwich.Multiple choice question.increasesdecreasesbecomes zeroremains the same
The table below depicts the total utility when consuming cups of coffee. Cups of Coffee (cups) Total Utility (utils)0 01 42 73 8 What is the marginal utility of the second cup of coffee?Multiple choice question.7 utils11 utils3 utils4 utils
Item11pointseBookHintPrintReferencesItem 1Total utility is best defined as theMultiple Choicechange in marginal utility multiplied by the price of a product.maximum amount of satisfaction from consuming a product.total satisfaction received from consuming a good, service, or combination of goods and services.additional satisfaction received from consuming an additional unit of a good or service.
Suppose you have the following information on John’s preferences. Hamburgers, Pizza, and UtilityHamburgers Marginal Utility of Hamburgers Marginal Utility of Hamburgers per Dollar PH=$5PH=$5Slices of Pizza Marginal Utility of Slices of Pizza Marginal Utility of a Slice of Pizza per Dollar PP=$2PP=$21 20 4 1 14 7 Assuming John has the income to purchase either good, which statement is true?Multiple choice question.John should first purchase a slice of pizza because the marginal utility per dollar is higher than hamburgers.Not enough information to determine which good should be purchased.John should first purchase a hamburger because the marginal utility is greater than a slice of pizza.John should first purchase a slice of pizza because the price is lower than hamburgers.
What is the change in total utility due to consumption of one additional unit of an item called ?Marginal Utility Maximum Utility Minimum Utility Change Utility
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.