Suppose John goes to a wedding reception where free drinks are served. He will drink until the marginal utility of an additional drink is _____.

a. ?infinite
b. ?less than zero
c. ?greater than one
d. ?one
e. ?zero


Ans: e. ?zero

Economics

You might also like to view...

An escalation or automatic adjustment provision in a purchase contract for some good deters opportunistic behavior and automatically reallocates risk as its price changes

Indicate whether the statement is true or false

Economics

The interest rate that commercial banks charge each other for very short-term loans is called the:

A. federal funds rate. B. prime rate. C. bank loan rate. D. Federal Reserve discount rate.

Economics

What is meant by economies of scale and what is the importance of this concept to economic growth?

Please provide the best answer for the statement.

Economics

A surplus quantity will occur when

a. quantity demanded is greater than quantity supplied. b. price is above equilibrium. c. demand is elastic. d. price is below equilibrium.

Economics