The concept of diminishing marginal utility:
A. is the change in total utility that comes from consuming one additional unit of a good or service.
B. is the principle that the additional utility gained from consuming successive units of a good or service tends to be smaller than the utility gained from the previous unit.
C. is the principle that the additional utility gained from consuming different bundles of goods and services tend to be smaller than the utility gained from consuming just one bundle of goods and services.
D. explains why individuals rarely maximize their total utility.
Answer: B
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Answer the following statement true (T) or false (F)
The marginal productivity of capital increases with greater capital inflows into the borrowing country.
Answer the following statement true (T) or false (F)
Charlie's income went from $1000 per week to $1500 per week. As a result he increased his consumption of beef from 1 pound a week to 3 pounds a week. Based on his consumption patterns, the income elasticity of beef for Charlie is
A. -1.50. B. 2.50. C. .50. D. -.50.
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