The amount by which total utility rises when an additional unit of a good is consumed is called:
a. average utility
b. the law of diminishing returns
c. incremental utility
d. marginal utility
d. marginal utility
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Maria helps tutor students taking economics. The equilibrium price for tutoring is $15 per hour
Maria has determined her opportunity cost per hour to be $6 for the first, $9 for the second, $12 for the third, $15 for the fourth, and $18 for the fifth. How many hours will Maria tutor? Why this amount of hours? What, if any, is Maria's producer surplus?
A game is:
A. a situation in which each member of a group makes at least one decision and cares both about his own choice and about others' choices. B. describes a situation in which strategy plays a role. C. provides the foundation for understanding competition in industries with only a few producers. D. All of these are correct.
Give a scenario of a perfectly competitive firm finding the profit-maximizing level of output over a several-year period.
What will be an ideal response?
When demand is elastic,
A. an increase in price causes total revenue to rise. B. marginal revenue is negative. C. the percentage change in price exceeds the percentage change in quantity. D. both b and c E. none of the above