Because of the law of diminishing marginal utility, total utility of consuming any good or service
a. increases at a decreasing rate as we consume more of any good or service.
b. decreases as we consume more of any good or service.
c. stays the same.
d. none of the above
a. increases at a decreasing rate as we consume more of any good or service.
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The pricing system has a failure built into it when externalities exist
a. True b. False Indicate whether the statement is true or false
An increase in the interest rate is associated with an increase in bond prices
a. True b. False Indicate whether the statement is true or false
The formula for total fixed cost is
A) TFC = TC + TVC. B) TFC = TVC - TC. C) TFC = TC/TVC. D) TFC = TC - TVC.
Empirical studies suggest that when a large number of firms are present in a market, prices are usually ________ and profits are usually ________ than when there are only a few firms in a market.
A. lower; higher B. lower; lower C. higher; higher D. higher; lower