Marginal utility is defined as:
a. the total satisfaction derived from consuming a given amount of a product.
b. total satisfaction per unit of product consumption.
c. the difference between the total satisfaction derived from one level of product consumption and any other level of product consumption.
d. the addition to total satisfaction resulting from an additional unit of consumption.
d
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For a monopolist with a downward-sloping demand curve,
a. the coefficient of price elasticity of demand is infinite. b. the coefficient of price elasticity of demand is zero. c. as price increases, marginal revenue decreases. d. as price decreases, marginal revenue decreases. e. when the price is equal to zero, marginal revenue is equal to zero.
If a firm is not forced to take account of a negative externality it creates, it will produce the quantity at which
a. the marginal cost of production equals the marginal private benefit b. the marginal cost of production equals the marginal social benefit c. the marginal social cost of production the equals marginal private benefit d. the marginal social cost of production equals the marginal social benefit e. price equals marginal social benefit
Refer to Table 7.1. What is the average product of the 4th worker?
A. 4 units of output
B. 3 units of output
C. 16 units of output
D. 6 units of output
Moral hazard occurs when a person's behavior changes in a way that
a. is immoral b. is inherently dangerous c. increases the chances of an unfavorable outcome d. increases the likelihood of profit e. raises the net welfare of society