1. EQ #3 AGEC 105 (4 pts) September 12, 2012 1. Given the following data:
Quantity of Wings Total Utility Marginal Utility (MU) ?(a)
?(b)
The MU between 2 and 3 wings is ___26___________.
The MU between 3 and 6 wings is ____22__________.
When total utility is at a maximum, marginal utility is _____0________.
The marginal utility of a good (i.e. cheese) declines with increases in the consumption of that good. This phenomenon is referred to as the Law of Diminishing Marginal Utility.
For a representative consumer, 7 tacos and 5 hamburgers generate the same utility 4 tacos and 9 hamburgers.
How many tacos must the consumer give up in order to get one more hamburger? -3/4
What is the technical name associated with this trade-off? marginal rate of substitution (MRS)
5. The graph of alternative consumption bundles that provide a consumer a given level of satisfaction is called a(n) indifference or iso-utility curve.
½ pt.
1 pt.