micro chapter 6

Question 1

marginal utility (MU)?

Answer 1

Additional utility from consuming an extra unit

Question 2

law of diminishing marginal utility

Answer 2

The amount of additional utility decreases as ore units of a product are consumed

Question 3

What is Utility?

Answer 3

A measure of the relative levels of satisfaction that consumers get from consuming goods and services. Measured in utils

Question 4

Total utility(TU)

Answer 4

The total amount of satisfaction derived from consuming a certain number of units of a good or service

Question 5

Consumer equilibrium

Answer 5

Consumers must allocate their incomes so the MU per dollar is the same for every good

Question 6

Consumer surplus

Answer 6

The difference between what a consumer is willing to pay and what the consumer actually pays/.

Question 7

Producer surplus

Answer 7

the difference between wha ta producer is paid for a good and the cost of producing that unit the good

Question 8

Deadweight loss

Answer 8

the net loss of total surplus that results from changing is a competitive market equilibrium.