Question:

Marginal Utility Question (Check My Work)?

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Here's the Question: http://i35.tinypic.com/2v8nz7m.jpg

My Approach: I think it's TRUE because she gets the most satisfaction out of buying 1 DVD player. If she buys another she wouldn't be as satisfied...However, I may be wrong because the wording of the question might be suggesting I look into another factor. That's where I need your help. Thanks!

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2 ANSWERS


  1. False - Nuru will buy DVDs until reaching equilibrium between marginal utility and money spent for players and other goods/services: MU1/P1=MU2/P2=...=MUn/Pn


  2. yes ur right there if she buys one dvd her marginal utility is high.if we take the example of a hugry man who wants to buy apples he will not be satisfied with one he eats untill he his marginal utility is negetive.

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