Which of the following is FALSE?
A. Assuming that the law of diminishing marginal utility holds, the demand curve must be upward sloping.
B. A consumer is maximizing total utility when he or she gets the same amount of marginal utility from the last dollar spent on each good purchased.
C. As additional units of a good or service are consumed, marginal utility diminishes.
D. Utility is want-satisfying power.
Answer: A
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A minimum wage law dictates
A) the minimum qualifications for labor. B) the minimum quantity of labor that a firm must employ. C) the highest wage that firms must pay for labor. D) the lowest wage that firms may pay for labor.
According to the figure shown, if Adidas charges a low price, then Nike should:
A. charge a high price.
B. leave the market.
C. charge a low price.
D. give an ultimatum.
Which of the following mistakes do consumers commonly commit when making decisions?
a. They take into account monetary costs but ignore nonmonetary opportunity costs. b. They fail to ignore sunk costs. c. They are unrealistic about their future behavior. d. All of the above are mistakes consumers commonly commit when making decisions.
The monopolist's marginal revenue is less than price since
A) additional units can only be sold if the price is lowered on all units sold. B) the demand function is horizontal. C) average revenue is also less than price. D) average total cost is declining.