The law of diminishing marginal utility states that
A) the extra satisfaction from consuming a good decreases as more of a good is consumed, other things constant.
B) when the extra satisfaction from consuming a good becomes negative, total utility starts falling, other things constant.
C) eventually total utility falls as more of a good is consumed, other things constant.
D) the extra satisfaction from consuming a good increases slowly as more of a good is consumed, other things constant.
A
You might also like to view...
Refer to Figure 7.1. Dudley values silence at
A) $100. B) $200. C) $350. D) $550.
Which of the following is an example of a positive statement?
A) It is too hot to go jogging.
B) Ceteris paribus, a teacher should award a higher grade if you study more hours for an economics test.
C) When the price of an item increases, people respond by reducing their consumption of the item.
D) The government should balance the budget.
An increase in aggregate demand will have a smaller long-run effect on real GDP if the: a. aggregate demand curve is flat
b. short-run aggregate supply curve is horizontal. c. economy is well below potential output. d. economy is already at potential output. e. aggregate demand curve is fairly steep.
Bob's Burgers is well-known for introducing new types of burgers every month. However, after a year, it was seen that the cost of changing the price tags and food menu every month was greater than the profit earned. In order to minimize the cost, Bob's Burgers digitized its menu. The cost experienced by Bob's Burgers exemplifies _____
a. sunk costs b. opportunity costs c. menu costs d. variable costs