Term
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Definition
| The total amount of satisfaction or pleasure a person derives from consuming some specfic quantity of a good or service |
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Term
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Definition
| The extra satisfaction a consumer realizes from an additional unit of that product |
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Term
| If you have to pay mary $50 to attend an event, what would her marginal utility be? |
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Definition
A. Zero
B. Positiive but declines rapidly
C. Negative
D. Positive, but less than $50. |
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Term
| Law of Diminishing marginal utility |
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Definition
| The added satisfaction declines as a consumer acquires additional units of a given product. |
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Term
| When Total Utilty is at it's maximum, marginal utility is |
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Definition
A. Negative
B. Positive and increasing
C. Zero
D. Positive but decreasing |
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Term
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Definition
| the limited amount of money income |
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Term
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Definition
| To maximize satisfaction, the comsumer will allocate his or her money income so that the last dollar spent on each product yields the same amount of extra utility. |
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