Diminishing marginal utility with rational behaviour

Assignment Help Macroeconomics

Reference no: EM1316091

All economics textbooks give examples that show diminishing marginal utility as consumption rises. In addition, these books show that negative marginal utility will occur at some high level of consumption. However, it could be argued that a rational buyer should never experience negative marginal utility. Why?

Reference no: EM1316091

Questions Cloud

Discrete distribution by estimating the probability : What is the probability that both defective lights will be found within three trials?

Population grows every year is fixed or constant : Assume that the amount your town's population grows every year is fixed or constant. Utilize your equation in part b to approximate the population in the year 2030.

The quadratic equations : the quadratic equations

Computation stock price and return by gordon growth model : Computation stock price and return by Gordon growth model and The dividend is expected to grow at a constant rate of 6 percent a year

Diminishing marginal utility with rational behaviour : All economics textbooks give examples that show diminishing marginal utility as consumption rises-However, it could be argued that a rational buyer should never experience negative marginal utility. Why?

Probability-randomly chosen employee : Let A be the event that a randomly chosen employee has a college degree and B the event that the chosen employee's income is more than $50,000.

Control charts this problem will be referred to in the study : Binomial Distribution: Control Charts this problem will be referred to in the study of control charts. In the binomial probability distribution, let the number of trials be n = 3, and let the probability of success be p = 0.0228.

Multiple questions on accounting principles : Multiple questions on accounting principles - Carter Cleaning completed the following transactions: Purchased $18,000 of Office Supplies for $8,000 cash and the remainder on credit. Purchased equipment for $7,950 on credit. As a result of these tr..

Graph the model as well as investigate it by four models : You will investigate four different scenarios of population growth also decline in this town. Graph the model as well as investigate it by four different growth models.

User Account

All Pages