The "law" of diminishing marginal utility implies that the
A) total utility is constant as more units are consumed.
B) last unit of a good consumed will contribute most to the consumer's satisfaction.
C) marginal utility of a good diminishes over time.
D) first unit of a good consumed will contribute most to the consumer's satisfaction.
E) total utility is negative.
Ans: C) marginal utility of a good diminishes over time.
You might also like to view...
?There are two economically meaningful ways of slicing two-input production frontiers.
Answer the following statement true (T) or false (F)
If prices are held above the equilibrium price:
A) social surplus is maximized. B) all firms incur losses. C) there exists a surplus in the market. D) there exists a shortage in the market.
A lower marginal propensity to consume is most likely to result in a(n): a. flatter aggregate expenditure line
b. steeper aggregate expenditure line. c. upward shift of the aggregate expenditure line. d. downward shift of the aggregate expenditure line.
If purchasing-power parity holds but then U.S. prices rise, which of the following move the exchange rate back towards purchasing-power parity?
a. foreign prices rise or the U.S. nominal exchange rate rises b. foreign prices rise or the U.S. nominal exchange rate falls c. foreign prices fall or the U.S. nominal exchange rate rises d. foreign prices fall or the U.S. nominal exchange rate falls