28 Replies to “Marginal Utility”

  1. Yeah the 4th and 5th dollar were spent on fruit because he could have spent the 4th dollar on the 40 utils of chocolate but that would leave him with one dollar (the 5th dollar) that he couldn't spend on fruit. So 60 > 40.

  2. Can we say that cardinal utility offers a technique to measure the utility whereas ordinal utility introduces two bundles from which we can derive the utility of goods by standing to the preferences. I mean, let assume that we are given two bundles (x1;x2) and (y1;y2). If consumer prefers (x1;x2) rather than (y1;y2), we can come to the conclusion that utility of the preferred bundle is higher than the rejected one. In a word, in cardinal utility, the end result is a matter of numbers while in the ordinal utility the result depends on the preferences.

  3. This is a problem I am having trouble with…

    If the Marginal utility of the last crumpet consumed is 64 utils and the price of tea and crumpets is 8 and 16 respectively, what was the marginal utility of the last cup of tea consumed?

  4. Just like many other economics theories, this concept too is nearly useless for practical purposes, because from where will I get my Marginal Utility statistics?

    Also, I do love economics though.

  5. We're getting 120 utility points for first pound of fruits, now with the increase of quantity the marginal utility is decreasing… By this way marginal utility for (1/2) pound of fruits should also be greater than 60… Isn't it?

  6. What if you get that chocalate for free , what would be the MU/ P ? It has to be undefined because of Number / O equals to undefined. How do we have to express that undefined situation in economics ? sorry for bad english

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