Which of the following best describes consumer choice in relation to preferences for goods and services?

BlackTom题目解析

Question

Which of the following best describes consumer choice in relation to preferences for goods and services?

BlackTom题目解析

BlackTom AI · Accepted Answer

To tackle the question on consumer choice and preferences, I’ll evaluate each statement in light of how marginal utility and the nature of utility are typically described in consumer theory.
Option 1: 'Consumers have a vague idea of how much marginal utility they will get from successive units of various products they might purchase.' This aligns with the idea that individuals have an approximate awareness of the additional satisfaction (marginal utility) from each extra unit of a good, rather than an exact forecast. The phrase 'vague idea' captures the imperfect, subjective nature of marginal utility estimates consumers hold when making choices.
Option 2: 'Consumers have a good idea of how much marginal utility they will get from successive units of various products they might purchase.' The term 'good idea' implies precise knowledge, which contrasts with standard consumer theory that treats marginal utility as subjective and not precisely known in advance. This overstates certainty in predictions of satisfaction per unit.
Option 3: 'Consumers have a good idea of how much marginal utility they will get from total units of various products they might purchase.' Here, the reference shifts to 'total utility' rather than marginal utility. Since the question is about marginal utility per successive units, this statement misplaces the concept by focusing on total rather than incremental satisfaction.
Option 4: 'Consumers have a vague idea of how much total utility they will get from successive units of various products they might purchase.' This mixes the idea of total utility with the notion of successive units. Total utility aggregates satisfaction across all units, which is not what marginal utility per additional unit addresses, making this option conceptually mismatched.
Option 5: 'Consumers have a good idea of how much total utility they will get from successive units of various products they might purchase.' Similar to option 4, this emphasizes total utility and uses a 'good idea' of it, but the question focuses on the marginal (incremental) utility of successive units, so this option mischaracterizes the relevant concept and overstates predictability.
In summary, the best fit among the statements is the one that acknowledges consumers have only a vague, subjective sense of the marginal utility from each extra unit, rather than precise or total-utility forecasts. The other options either misstate marginal versus total utility, or imply a level of certainty that standard consumer theory does not ascribe to individuals when predicting marginal satisfaction from successive purchases.

Which of the following best describes consumer choice in relation to preferences for goods and services? BlackTom题目解析

View Explanation

Log in for full answers

Similar Questions

Suppose Utility function is given by U(x) = 8X0.5. Marginal utility at X = 4 is ____

Marginal utility is equal to

Which of the following defines marginal utility?

If successive units of a good yield smaller and smaller amounts of marginal utility then the consumer will buy additional units of a product only if its price Blank ______. BlackTom题目解析

What is marginal utility if total utility is falling? BlackTom题目解析

More Practical Tools for International Students

Exam Browser Assistant

Stylized Writing Assistant

Plagiarism Checker Assistant

Citation Assistant

In-Class Translation Assistant

Class Notes Assistant

Quiz Search Assistant

Past Exam Questions by School

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler