1. The water–diamond paradox has never been resolved. 2. Total utility will rise

Question

1. The water–diamond paradox has never been resolved.
2. Total utility will rise as long as marginal utility is rising.
3. The concept of consumer surplus was formulated by Alfred Marshall.
4. Total utility is at a maximum when marginal utility is zero.
5. We are maximizing our utility when the marginal utility of each good or service we purchase is equal to its price.
6. Utility is measured by a product's usefulness.
7. As increasing amounts of a product are consumed, marginal utility will decline.8. If Matthew Avischious were to purchase five drinks at $1 each, he would a consumer surplus.e

Explanation / Answer

1. F 2. F (marginal utility could be negative and rising, in other words getting less negative). 3. T 4. F (it could be at a minimum also) 5. F (when ratio of the marginal utility to price is the same for all goods). 6. T 7. T 8. F (Only if he valued the drinks at higher than $1 apiece).

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.