1. You are watching: If total utility is increasing at a decreasing rate, marginal utility is | FIGURE 21-1 Total and marginal utility Curves TU and MU are graphed from the data in the table. (a) As more of a product is consumed, total utility increases at a diminishing rate, reaches a maximum, and then declines. (b) Marginal utility, by definition, reflects the changes in total utility. Thus marginal utility diminishes with increased consumption, becomes zero when total utility is at a maximum, and is negative when total utility declines. As shown by the shaded rectangles in (a) and (b), marginal utility is the change in total utility associated with each added hamburger. Or, alternatively, each new level of total utility is found by adding marginal utility to the previous level of total utility. |

R-1 21-1 |

Marginal utility:** **

A. | is the extra output a firm obtains when it adds another unit of labor. |

B. | explains why product supply curves are upsloping. |

C. | typically rises as successive units of a good are consumeD. |

D. | is the extra satisfaction from the consumption of 1 more unit of some good or service. |

2. | FIGURE 21-1 Total and marginal utility Curves TU and MU are graphed from the data in the table. (a) As more of a product is consumed, total utility increases at a diminishing rate, reaches a maximum, and then declines. (b) Marginal utility, by definition, reflects the changes in total utility. Thus marginal utility diminishes with increased consumption, becomes zero when total utility is at a maximum, and is negative when total utility declines. As shown by the shaded rectangles in (a) and (b), marginal utility is the change in total utility associated with each added hamburger. Or, alternatively, each new level of total utility is found by adding marginal utility to the previous level of total utility. |

R-1 21-1 |

Marginal utility in Figure 21-1b is positive, but declining, when total utility in Figure 21-1a is positive and:** **

A. | rising at an increasing rate. |

B. | falling at an increasing rate. |

C. | rising at a decreasing rate. |

D. | falling at a decreasing rate. |

3. | FIGURE 21-1 Total and marginal utility Curves TU and MU are graphed from the data in the table. (a) As more of a product is consumed, total utility increases at a diminishing rate, reaches a maximum, and then declines. (b) Marginal utility, by definition, reflects the changes in total utility. Thus marginal utility diminishes with increased consumption, becomes zero when total utility is at a maximum, and is negative when total utility declines. As shown by the shaded rectangles in (a) and (b), marginal utility is the change in total utility associated with each added hamburger. Or, alternatively, each new level of total utility is found by adding marginal utility to the previous level of total utility. |

R-1 21-1 |

When marginal utility is zero in graph (b), total utility in graph (a) is:** **

A. | also zero. |

B. | neither rising nor falling. |

C. | negative. |

D. | rising, but at a declining rate. |

4. | |

R-1 21-1 |

Suppose the person represented by these graphs experienced a diminished taste for hamburgers. As a result the:** **

A. | TU curve would get steeper. |

B. | MU curve would get flatter. |

C. | TU and MU curves would shift downwarD. |

D. See more: Wea The Physical Breakdown Of A Rock Into Smaller Pieces Is Called | MU curve, but not the TU curve, would collapse to the horizontal axis. |

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