asked 103k views
4 votes
What are the total benefits to this individual if she consumes 10 units of the good?

asked
User Dattaya
by
8.0k points

1 Answer

7 votes

Final answer:

A rational consumer will only purchase additional units of a good as long as the marginal utility exceeds the opportunity cost. The total benefits to an individual consuming 10 units of a good cannot be determined without specific information on marginal utility and opportunity cost.

Step-by-step explanation:

A rational consumer will only purchase additional units of a good as long as the marginal utility exceeds the opportunity cost. As the consumer consumes more units of the good, the marginal utility of the good will diminish, while the opportunity cost will increase. Eventually, the opportunity cost will exceed the marginal utility of an additional unit, and the consumer will stop purchasing more units.

In this scenario, the individual consumed 10 units of the good. To determine the total benefits to this individual, we would need to know the specific information about the marginal utility and opportunity cost for each unit consumed. Without that information, we cannot calculate the exact total benefits.

answered
User Neil Masson
by
7.8k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.