This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain how it is possible for marginal utility to fall while total utility is still on the rise? ... (Read 108 times)

Wadzanai

  • Hero Member
  • *****
  • Posts: 528
on: Jun 29, 2018
Explain how it is possible for marginal utility to fall while total utility is still on the rise?
 
  What will be an ideal response?

Question 2

Ron's Hamburger Joint is the only restaurant in town. The above figure represents Ron's cost, demand, and marginal revenue curves. Ron operates as a single-price monopoly.
 
  a) How many hamburgers does Ron produce?
  b) What price does Ron charge for a hamburger?
  c) What is Ron's total revenue?
  d) What is his total cost?
  e) What is Ron's economic profit?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

popopong

  • Sr. Member
  • ****
  • Posts: 307
Reply #1 on: Jun 29, 2018
Answer to Question 1

Total utility is the sum of the marginal utilities of all previous units. Even if marginalutility is falling as long as it is still positive that will allow total utility to continue torise.

Answer to Question 2

a) Ron produces 20 hamburgers per hour.
b) The price is 6 for a hamburger.
c) Ron's total revenue is 120 an hour.
d) Ron's total cost is 80 an hour.
e) Ron's economic profit is 40 an hour.


Wadzanai

  • Member
  • Posts: 528
Reply 2 on: Jun 29, 2018
Excellent

amynguyen1221

  • Member
  • Posts: 355
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Colles’ A break in the distal portion of the radius; often the result of reaching out to cushion a f Colles’ A break in the distal portion of the radius; often the result of reaching out to cushion a f
During a total solar eclipse, the solar corona can be seen with the naked eye, during the brief peri During a total solar eclipse, the solar corona can be seen with the naked eye, during the brief peri
Fall Fall
A Total Eclipse of the Sun A Total Eclipse of the Sun
Compression ratio is the ratio of the total cylinder volume (when the piston is at the bottom of ... Compression ratio is the ratio of the total cylinder volume (when the piston is at the bottom of ...
Find the lateral area, total surface area, and volume of the frustum Find the lateral area, total surface area, and volume of the frustum
Video: Generalized life cycles for plants and animals Animation

For a complete list of videos, visit our video library