Essay
Explain the assumptions made about consumers and households used to build utility theory.
-What happens to total utility even if there is diminishing marginal utility? Even if there is diminishing marginal utility, why is it assumed that people prefer more rather than less?
Correct Answer:
Verified
Correct Answer:
Verified
Q29: Explain the conditions under which utility is
Q30: Whats defention of terms:<br>-marginal utility
Q31: Discuss the criticisms of the assumptions of
Q32: Explain how consumers maximize their utility (joy)
Q33: Explain the assumptions made about consumers and
Q35: Whats defention of terms:<br>-total utility
Q36: Whats defention of terms:<br>-conspicuous consumption
Q37: Understand and demonstrate how the demand curve
Q38: Whats defention of terms:<br>-negative marginal utility
Q39: Whats defention of terms:<br>-ordinal utility