1. What is diminishing marginal utility and why does it occur as consumers purchase more units?

2. How could a business persuade a consumer to purchase more units of a good experiencing diminishing marginal utility?

1. How does marginal benefit differ from marginal utility and why do economists prefer using marginal benefit?

2. What determines whether a consumer will purchase an additional unit based on marginal benefit and marginal cost?

1. What is marginal analysis and how do rational consumers use it to make purchasing decisions?

1. How do changes in price per unit affect a consumer's decision about how many units to purchase?

2. At what point does a rational consumer stop purchasing additional units of a good?

1. What is the relationship between marginal benefits and total benefits, and how do you calculate total benefits?

2. Why is it important for consumers to understand both marginal and total values when making purchasing decisions?

1. Using a marginal analysis table, how do you determine the optimal quantity a consumer should purchase?

2. Why would a consumer purchase units where marginal benefit exceeds marginal cost but stop before marginal benefit falls below marginal cost?

3. How does the relationship between total utility and marginal utility change as consumption increases?

1. What are sunk costs and why should rational consumers ignore them when making decisions?

2. How does focusing on marginal costs and benefits rather than total costs and benefits lead to better consumer decisions?

1. What is the utility maximization rule and what does it tell consumers about how to allocate their spending?

2. What does it mean when the marginal utility per dollar spent is equal across different products?

1. What is a budget constraint and how does it affect a consumer's purchasing decisions?

2. How does a consumer use the MU/P ratio to determine the optimal combination of two goods to purchase?

3. Why does the utility maximization rule require that MU/P ratios be equal across all goods purchased?

1. How can you verify that a particular combination of goods maximizes utility given a fixed budget?

2. What happens to total utility when a consumer changes their purchase combination away from the utility-maximizing point?