The following table describes utility for consuming cans of soda. At what point does the law of diminishing marginal utility set in?Cans of SodaTotal utility114230347457556650742
A. Marginal utility never diminishes.
B. Between three and four cans
C. Marginal utility diminishes everywhere.
D. Between four and five cans
Answer: B
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The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the firms' surplus equals ________
A) $800 B) $900 C) $1,800 D) $400 E) $200
When production reflects consumer preferences, ________ occurs
A) productive efficiency B) allocative efficiency C) equity D) efficient central planning
Tying arrangements that lessen competition were made illegal by
A) the Sherman Anti-Trust Act. B) the Clayton Act. C) the Celler-Kefauver Act. D) the Robinson-Patman Act.
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Indicate whether the statement is true or false