The law of diminishing marginal utility explains why the demand curve is downward sloping. The law states that as you consume more of a good, the
a. total satisfaction you obtain from consuming the good falls
b. added satisfaction you obtain from consuming an additional unit of the good increases at a diminishing rate
c. marginal product increases at a diminishing rate
d. satisfaction you obtain from each additional unit of the good you consume falls
e. total satisfaction you obtain from each additional good you consume decreases at a diminishing rate
D
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Marcus sells 300 candy bars at $0.50 each. His total costs are $125. His profits are
A. $25. B. $124.50. C. $125. D. $150.
What is the national income identity for a closed economy?
What will be an ideal response?
If compared against other criteria for evaluating the public interest, the social welfare function is most comparable to _____
a. utilitarianism b. the Pareto criteria c. the potential compensation criterion d. cost-benefit analysis
What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pattern of international trade?
What will be an ideal response?