Monday

December 22, 2014

December 22, 2014

Posted by **Anonymous** on Sunday, November 30, 2008 at 1:00pm.

where he will then be maximizing his TU.

I don't understand why more of a good decreases MU since in the example, it states that eating more pizza increases MU. Can someone please clarify this part for me? Thanks.

MU = marginal utility

Pp = Price per pizza

Pw = Price per wing

MUp = marginal utility for pizza

MUw = marginal utility for wings

- Microeconomics: Consumer Theory -
**economyst**, Monday, December 1, 2008 at 8:57amMU in consumption is (almost always) postive but declining. Make a graph, put MUz on the y-axis, put consumption of good z on the x-axis. You should graph a downward sloping relationship, but MU is always positive. That is, each additional unit (bite) of good z adds to total utility, but less than the previous bite.

I hope this helps, if not, repost.

- Microeconomics: Consumer Theory -
**GALMESSA**, Sunday, January 11, 2009 at 2:21amCONSUMING MORE OF ONE GOOD DECREASE MU BECAUSE THE ADDIONAL SATISFACTION YOU GET DECREASE FROM CONSUMING ONE GOOD.

THANKS.

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