Author Question: Are your total and marginal utility of ice cream schedules determined by the price of ice cream? ... (Read 70 times)

saraeharris · **on:** Jun 29, 2018

Are your total and marginal utility of ice cream schedules determined by the price of ice cream?

What will be an ideal response?

Question 2

In a perfectly competitive market, a permanent decrease in demand initially brings a lower price, economic

A) loss, and entry into the market.
B) loss, and exit from the market.
C) profit, and entry into the market.
D) profit, and exit from the market.

smrtceo · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

No. Your total and marginal utility are determined purely by how much or how little you like ice cream. If you like it a lot, your marginal utility will be higher than otherwise for each additional ice cream scoop you consume and that will cause your total utility to be higher.

Answer to Question 2

B