Marginal utility is the:

A) sensitivity of consumer purchases of a good to changes in the price of that good.
B) change in total utility obtained by consuming one more unit of a good.
C) change in total utility obtained by consuming another unit of a good divided by the change in the price of that good.
D) total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.


Ans: B) change in total utility obtained by consuming one more unit of a good.

Economics

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John is maximizing utility by choosing to spend 90 minutes reading a chapter in The Theory of Moral Sentiments, which will give him 450 units of utility, instead of spending 20 minutes reading a chapter of Atlas Shrugged, which will give him 200 units of utility. (Assume marginal utility decreases slowly.)

Answer the following statement true (T) or false (F)

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(Consider This) Newspaper dispensing devices seemingly "trust" people to take only a single paper, but the devices actually rely on the law of:

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Economics