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Introductory Microeconomics Anonymous Student 9 months ago Which of the following statements is correct? A. Utility and usefulness are synonymous. B. The marginal
utility derived from successive units of a product tends to be similar for all consumers. C. Because utility is not measurable, the utility-maximizing rule provides no useful insights as to consumer behaviour. D. A product may yield utility, but not be functionally useful All replies Expert Answer 9 months ago Utility is an economic concept that refers to the happiness and satisfaction received from consuming a commodity or service. It is true that the economic concept of utility is synonymous with the general meaning of the term usefulness. This is because both of them indicate the satisfaction achieved from a commodity or service. So, this is the correct statement and hence the correct answer. The Law of Diminishing Marginal Utility (LDMU) states that for every rational consumer the additional utility or the marginal utility derived by consuming every successive unit of a commodity declines. It is a fact that utility is non-measurable in nature. But, the entire consumer choice theory is built upon the presumption that every rational consumer wishes to maximize their total utility. Thus, utility plays an important role. As discussed earlier, both utility and usefulness indicate the satisfaction achieved from a commodity. So, any product that derives utility must have some usefulness. Related Answered QuestionsHow Expert Q&A works: Ask your study questions to our Experts. Receive an answer explained step-by-step. Get your answer as fast as 30 minutes. What is true of total utility and consumer behavior?What is true of total utility and consumer behavior? Utility will continue to increase at a steady rate with every additional purchase.
Which of the following statements about total utility is true?The correct answer is When the total utility is maximum, marginal utility is zero. When the total utility is maximum, marginal utility is zero, this statement is true because unit of goods are consumed till saturation point and after it MU becomes negative.
Which of the following statements is true total utility will rise if marginal utility is negative?If marginal utility is positive then total utility will increase. Once marginal utility is negative, then total utility will decrease.
Which of the following statements is true if the principle of diminishing marginal utility applies?Which of the following statements is true of the law of diminishing marginal utility? The law of diminishing marginal utility states that as more units of a good are consumed, the marginal utility from the consumption of the next unit becomes lesser.
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Which of the following statements is true about total utility and consumer behavior?
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