Refer to the above diagram. Total utility:
A) increases so long as additional units of Y are purchased.
B) becomes negative at 4 units.
C) increases at a diminishing rate, reaches a maximum, and then declines.
D) is maximized at 2 units.
Answer: C) increases at a diminishing rate, reaches a maximum, and then declines.
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The figure above portrays a total revenue curve for a perfectly competitive firm. The firm's marginal revenue from selling a unit of output
A) equals $0.50. B) equals $1.00. C) equals $2.00. D) cannot be determined.
Gresham's Law:
a. applies only to bimetalism issues. b. applies only to monetary issues in general. c. applies to a wide variety of situations. d. is only understood after taking graduate-level courses.
. An example of a nonrenewable resource would be:
A. trees. B. rivers. C. an oil deposit. D. All of these are examples of nonrenewable resources.
Rising prices help control the process of resource depletion by
A. encouraging consumption and waste. B. stimulating more efficient use of the depletable resource. C. disincentivizing resource-saving innovation. D. stimulating resource imports.