TRUE or FALSE. If the statement is correct, write TRUE on your answer sheet. If the statement is incorrect, write FALSE. Explain why you answered TRUE or FALSE. 1. When marginal utility is increasing, total utility is increasing at a decreasing rate.
TRUE or FALSE. If the statement is correct, write TRUE on your answer sheet. If the statement is incorrect, write FALSE. Explain why you answered TRUE or FALSE. 1. When marginal utility is increasing, total utility is increasing at a decreasing rate.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 11SQ
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TRUE or FALSE. If the statement is correct, write TRUE on your answer sheet. If the
statement is incorrect, write FALSE. Explain why you answered TRUE or FALSE.
1. When
2. A negative marginal utility implies that the consumer has reached a point of satiation.
3. The marginal rate of substitution (MRS) is the slope of the indifference curve. This
implies that the rate a consumer substitute siapao for hopia is based on their marginal
utilities.
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