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11.The "for whom to produce" problem is fundamentally about:

1.1 The Concept of Utility 1. Utility in economics means

2. Which statement best describes total utility?

3. Marginal utility is defined as

4. The law of diminishing marginal utility states that

5. When total utility is maximum, marginal utility is

1.2 The Cardinal Utility Theory 6. Cardinal utility theory assumes that utility is

7. According to the law of equi-marginal utility, a consumer maximises satisfaction when

8. If MUx / Px > MUy / Py, the consumer should

1.3 The Consumer Maximization Problem 9. A consumer reaches equilibrium when

10. TU from 1, 2, 3 and 4 units of a good is 10, 18, 24 and 28 utils respectively. MU of the 3rd unit is

11. A consumer buys 5 units of X when TU is 40 utils. If MU of the 6th unit is 3 utils, TU from 6 units is

12. MUx = 20, Px = birr 4, MUy = 30, Py = birr 6. Is the consumer in equilibrium?

13. A consumer has birr 100. Price of X is birr 10 and Y is birr 20. Maximum units of X he can buy (if he buys only X) is

14. TU from successive units: 15, 28, 39, 48, 55. MU of the 4th unit is

15. MUx = 40, Px = birr 8, MUy = 25, Py = birr 5. To maximise utility the consumer should