All categories

4 years ago

When would a good’s total utility and marginal utility be the same?

Business

1 answer:

Triss [41]4 years ago

7 0

Answer : 

Utility is the satisfaction a person derives from the consumption of a good or service. Total utility is the total satisfaction received from consuming a given total quantity of a good or service, while marginal utility is the satisfaction gained from consuming an additional quantity of that item. Sometimes, economists like to subdivide utility into individual units that they call utils. However, because utility is subjective, meaning that it differs from person to person, and because it varies continuously, depending on the quantity consumed, an util cannot actually be measured, but is simply a heuristic device that allows economists to talk about the degree of satisfaction for a product or service.Marginal utility always declines for each successive quantity of consumption. If you like ice cream, and you eat one scoop, the first scoop will provide the greatest satisfaction. If you eat another scoop, you'll probably enjoy that also, but the satisfaction will be less than for the first. At some point, you will not want any more ice cream. The marginal utility will drop to zero and may even become negative. This illustrates the law of diminishing marginal utility. Marginal utility declines for everything, including money. Although many people want to amass great wealth, each dollar accumulated becomes worth less and less, because the marginal utility of what it can buy declines.

Declining marginal utility explains why the demand curve slopes downward as the supply quantity is increased, and why people will only consume more if the price declines, since people's willingness to pay also declines.

Marginal utility is also related to the elasticity of demand. If demand is inelastic, then the quantity demanded drops off slowly as the price increases, indicating that the marginal utility of the product or service is high; with elastic demand, demand quantity drops off sharply, indicating a low marginal utility for the product, so the consumer is not willing to pay a higher price.

Please mark me as a brainlist...... 
Please follow me..... ✌✌

You might be interested in

From the information given below construct a cash budget for five months period starting form May 20X1 till September. MONTH AND

Alenkinab [10]

Answer:

Cash Surplus May $83,300 June $ 61,600 July $33,000

Aug $25,500 Sept $ 3650

Explanation:

MONTH AND YEAR PROJECTED SALES FIRST MONTH

COLLECTIONS (80%)

April 20X1 $ 140,000 112,000

May 20X1 130,000 104,000

June 20X1 90,000 72,000

July 20X1 65,000 52,000

August 20X1 84,000 67,200

September 20X1 95,000 76,000

October 20X1 160,000 128,000

November 20X1 200,000 160,000

December 20X1 240,000 192,000

January 20X2 190,000 152,000

First we find the monthly cash collections 80 % in the month of sales , 10% in the second month , 5% in the third and 5 % in the fourth . We have summed them up in the following table.

Sales Collections

MAY JUNE JULY AUGUST SEPT

Particulars

1st Month 104,000 72,000 52,000 67,000 76,000

Collections

2nd Month 14,000 13,000 9000 6500 8400

3rd Month 7000 6500 4500 3250

4th Month 7000 6500 4500

Total

Collections 118,000 92,000 74,500 84,500 92,150

Now we prepare the cash budget deducting payments from collections and maintaining beginning and ending balance.

Cash Budget

MAY JUNE JULY AUGUST SEPT

Particulars

Opening 10,000 10,000 10,000 10,000 10,000

Add Total

Collections 118,000 92,000 74,500 84,500 92,150

Less Closing 10,000 10,000 10,000 10,000 10,000

Less Payments34,700 30,400 41,500 59,000 88,500

 Cash Surplus 83,300 61,600 33,000 25,500 3650

4 0

3 years ago

Trey owns 250 shares of common stock in a toy–store company. This means that he owns a percentage of the company based on the pr

Sergeu [11.5K]

Answer:

The correct answer is D

Explanation:

The voting right is the right which is given to the shareholders of the company to vote on the matters of the corporate policy involving the decisions on the making of the BOD (Board of Directors), making changes in the operations of the corporation, issuing securities and initiate the corporate actions.

So, when the person owns 250 shares, which means owns the percentage of the company grounded on the proportion of the shares the person owns. Therefore, the person along with ownership gets the voting rights as well.

3 0

4 years ago

WoodCore Inc. produces an entire line of office furniture at its manufacturing facility in the United States and then ships its

Lynna [10]

Answer:

WoodCore Inc. is involved in exporting.

Explanation:

Exporting is the act of producing a good in the home country, and selling the product abroad.

WoodCore Inc. is involved in exporting because, as an American company, it finishes its products in the United States, but ships a part of the production for sale in Europe.

If instead, it obtained the finished goods from Europe, and sold them in the United States, WoodCore Inc. would be involved in importing.

4 0

3 years ago

You are working in a small, student-run company that sends out merchandise with university branding to alumni around the world.

Pavlova-9 [17]

0.142466 would be the upper control limit for a p-chart

Solution:

Given ,

Sample of 50 shipments

Average percentage of incorrect shipments = 5%

( ESD = $\sqrt{( Pbar( 1-Pbar ) / sample size)}$

= $\sqrt{( 0.05( 1- 0.05 ) / 50)}$

= 0.03082207 ( Remove square root )

UCL = Pbar + ( 3 * ESD)

= 0.05 + (3 * 0.03082207)

= 0.14246621

8 0

3 years ago

What methods can be used to predict demand for healthcare

kaheart [24]

The methods used to predict demand for healthcare are:

percent adjustment,
12-month moving average,
trendline
seasonalized forecast. This is further explained below.

<h3>What is healthcare?</h3>

Generally, the administration of organized medical treatment to individuals or to a community of patients.

In conclusion, there are many other quantitative approaches for predicting, but the four most prevalent methods are the seasonalized forecast, the trendline forecast, the percent adjustment prediction, and the moving average of the last 12 months. The organization's recent historical need served as the foundation for each of these four approaches.