The more we have of a good or service, the smaller is its marginal benefit and the less we are willing to pay for an additional unit of it
Indicate whether the statement is true or false
TRUE
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A craze for apples in Riverdale increases the quantity demanded at every price by five bushels. Between any two prices, the new demand curve will be ____ the old demand curve.
A. more elastic than B. less elastic than C. equal in elasticity to D. More information is needed to predict the relationship.
Monopolies charge
a. the highest possible price b. a price determined by cost c. the price consistent with the output level where total revenue equals total cost d. the price associated with the quantity at which marginal revenue equals marginal cost e. the price at which total revenue equals average total cost
If wages drop below the market equilibrium level in a competitive labor market:
A. firms will demand more labor than workers are willing to supply. B. there won't be enough workers willing to work at that wage. C. firms will have to offer higher wages to attract the workers they need. D. All of these statements are true.
When income levels in the home nation increase, what is the effect on the home TB?
a. It decreases because of expenditure switching. b. It decreases because of an increase in imports. c. It increases because of an increase in exports. d. It increases because of expenditure switching.