Total utility is maximized when the for all goods marginal

Total utility is maximized when the ________ for all goods.

marginal utilities are zero

marginal utilities are maximized

marginal utility per dollar spent is equal

marginal utilities are negative

According to marginal utility theory, a rise in income will

increase consumption of all goods.

increase the marginal utility of all goods.

increase a consumer\'s total utility.

None of the above answers is correct.

Marginal utility measures the

additional utility from an additional unit of consumption.

additional cost of an additional unit of consumption.

average utility from an additional unit of consumption.

total utility from consumption.

With respect to water and diamonds, water

has a higher marginal utility than diamonds.

has a lower marginal utility than diamonds.

is cheaper than diamonds because it has a higher total utility.

is cheaper than diamonds because it has a lower total utility.

The paradox of value refers to the fact that

different consumers value the same items differently.

water brings little consumer surplus.

water costs little, while diamonds cost a lot.

the value of a good depends on its total utility.

The principle of diminishing marginal utility says that

total utility decreases as the quantity of the good consumed increases.

marginal utility is negative as the quantity of the good consumed increases.

total utility increases by smaller and smaller amounts as the quantity of the good consumed increases.

total utility increases by larger and larger amounts as the quantity of the good consumed increases.

		marginal utilities are zero
		marginal utilities are maximized
		marginal utility per dollar spent is equal
		marginal utilities are negative According to marginal utility theory, a rise in income will increase consumption of all goods. increase the marginal utility of all goods. increase a consumer\'s total utility. None of the above answers is correct. Marginal utility measures the additional utility from an additional unit of consumption. additional cost of an additional unit of consumption. average utility from an additional unit of consumption. total utility from consumption. With respect to water and diamonds, water has a higher marginal utility than diamonds. has a lower marginal utility than diamonds. is cheaper than diamonds because it has a higher total utility. is cheaper than diamonds because it has a lower total utility. The paradox of value refers to the fact that different consumers value the same items differently. water brings little consumer surplus. water costs little, while diamonds cost a lot. the value of a good depends on its total utility. The principle of diminishing marginal utility says that total utility decreases as the quantity of the good consumed increases. marginal utility is negative as the quantity of the good consumed increases. total utility increases by smaller and smaller amounts as the quantity of the good consumed increases. total utility increases by larger and larger amounts as the quantity of the good consumed increases.

Solution

Q1. Answer is Marginal utility is zero. Q2. Answer is will increase the consumer total utility Q3. Answer is additional utility from an additional consumption of unit. Q4. Answer is Water has a lower marginal utility than diamond. Q5. Answer is Water cost little and diamond cost a lot. Q6. Answer is Total utility increases by smaller and smaller amount as the number of goods consumed increases.