Marginal Utility of Consumption
The marginal utility of consumption is the rate of change in a person's utility from an incremental increase in consumption (), while holding the amount of other goods like free time () constant. Using calculus, it is calculated as the partial derivative of the utility function with respect to consumption: .
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
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Marginal Utility of Free Time
Marginal Utility of Consumption
Calculus-Based Methods for Analyzing Indifference Curves
Specificity of Partial Derivative Expressions to the Utility Function
An individual's satisfaction from consuming a quantity 'c' of goods and enjoying 't' hours of free time is represented by the utility function U(c, t) = c^2 * t^3. What is the expression for the marginal utility of consumption (c)?
Calculating Marginal Utility of Free Time
Consumer Choice Analysis
An individual's satisfaction from consuming a quantity 'c' of goods and enjoying 't' hours of free time is described by the utility function U(c, t) = 5c + 2√t. Based on this function, which of the following statements is true?
An individual's preferences for consumption (c) and free time (t) are described by the utility function U(c, t) = 10 * ln(c) + 5t. What is the marginal utility of free time (t)?
Consider an individual whose preferences for consumption (c) and free time (t) are represented by the utility function U(c, t) = 2c + 10√t. For this individual, the additional satisfaction gained from one more hour of free time is always greater than the additional satisfaction gained from one more unit of consumption, regardless of their current amounts of consumption and free time.
Match each utility function, which describes an individual's satisfaction from consuming a quantity 'c' of goods and enjoying 't' hours of free time, with its corresponding expression for the marginal utility of free time.
Evaluating Claims about Marginal Utility
Analyzing Diminishing Marginal Utility
Consider an individual's preferences for consumption (c) and free time (t) represented by the utility function U(c, t) = 4c^0.5 * t^0.5. A student calculates the marginal utility of consumption and claims it is equal to 2c^-0.5. This claim is correct.
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Balancing Work and Leisure Goals
A person's satisfaction from consumption (c) and free time (t) is represented by the utility function U(c, t) = 4√c + 2t. What is the marginal utility of consumption for this person?
Interpreting Changes in Marginal Utility
True or False: For an individual with the utility function U(c, t) = 10√c + 5t, where 'c' is consumption and 't' is free time, the marginal utility of consumption increases as the level of consumption (c) increases.
Comparing Consumption Behavior
An individual's satisfaction from consumption (c) and free time (t) is described by the utility function U(c, t) = 5c^(1/2) + 4t. The expression for the marginal utility of consumption is ____.
Match each utility function, which represents a person's satisfaction from consumption (c) and free time (t), to its corresponding marginal utility of consumption function.
An individual's satisfaction from consumption (c) and free time (t) is represented by the utility function U(c, t) = 10√c + 5t. Arrange the following consumption levels in order from the one that provides the highest additional satisfaction from one more unit of consumption to the one that provides the lowest.
An individual's satisfaction from consumption (c) and free time (t) is described by a utility function, U(c, t). It is observed that for this individual, the additional satisfaction gained from consuming one more unit is always the same, no matter how much they are already consuming. Which of the following utility functions is consistent with this observation?
Dessert Decision Analysis
True or False: For an individual with the utility function U(c, t) = 10√c + 5t, where 'c' is consumption and 't' is free time, the marginal utility of consumption increases as the level of consumption (c) increases.