Why does total utility rise at a decreasing rate as an individual's consumption of an item increases?
What will be an ideal response?
This is due to the principle of diminishing marginal utility. As more of any good or service is consumed, its extra benefit declines, meaning that the extra utility from consuming each additional unit of the item falls off as consumption increases.
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U.S. producer surplus ________ when the United States imports a good and U.S. producer surplus ________ when the United States exports a good
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
To analyze policy options, economists are forced to deal with:
a. politicians b. business people c. rotating statistical values d. things that have not occurred e. None of these is correct.
Other things constant, how will a decrease in the wages of teenagers affect the market for fast food hamburgers?
a. The supply of fast food hamburgers will increase, leading to an increase in the price of hamburgers. b. The supply of fast food hamburgers will increase, leading to a reduction in the price of hamburgers. c. The supply of fast food hamburgers will decrease, leading to an increase in the price of hamburgers. d. The supply of fast food hamburgers will decrease, leading to a reduction in the price of hamburgers.
According to data on GDP growth between 1980 and 2009, which of the following statements is true?
What will be an ideal response?