Graphically,as a Consumer Buys More of a Good,the Marginal Utility

question 21

Multiple Choice

Graphically,as a consumer buys more of a good,the marginal utility line will

• A)Increase as more goods are consumed.
• B)Increase steadily and then decline.
• C)Continuously decline if diminishing returns are present.
• D)Follow the same shape as the total utility line.

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Definitions:

Bliss Point

The optimal quantity of consumption where any further increase or decrease would lead to a lower level of satisfaction for the consumer.

Indifference Curves

Graphical representations in microeconomics to illustrate different combinations of goods between which a consumer is indifferent.

Utility Function

A mathematical representation that ranks preferences or satisfaction levels consumers derive from different bundles of goods.

Perfect Substitutes

Products or goods that can replace each other perfectly with no loss of utility to the consumer.