In the diagrams below, the subscript "1" refers to the initial position of the curve, while the subscript "2" refers to the final position after the curve shifts.
Which diagram above illustrates the effect on the natural-gas market, with the widespread use of "fracking" or hydraulic fracturing by gas-drilling companies?
A. (1)
B. (2)
C. (3)
D. (4)
Answer: C
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Consumers of most goods usually experience diminished satisfaction in each additional unit consumed. However, when variety appears endless, this may not be the case. Consider manufactured goods between 1890 and 1910
Indicate whether the statement is true or false
Which of the following is assumed to be constant along a per-worker production function?
a. Output per worker b. Capital per worker c. Level of technology d. Amount of capital e. Amount of output
Marginal utility is the change in:
A. total utility when an extra unit of output is produced. B. marginal utility when an extra unit of output is consumed. C. total utility when an extra unit of output is consumed. D. average utility when an extra unit of output is consumed.
If marginal cost is above average cost, average cost must be rising.
Answer the following statement true (T) or false (F)