How does the marginal benefit from a good change as the quantity produced of that good increases?
What will be an ideal response?
As the more of a good is consumed, the marginal benefit received from each unit is smaller than the marginal benefit received from the unit consumed immediately before it, and is larger than the marginal benefit from the unit consumed immediately after it. This set of results is known as the principle of decreasing marginal benefit and is often assumed by economists to be a common characteristic of an individual's preferences over most goods and services in the economy.
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A profit maximizing price taker will produce at a level where
a. the wage equals the marginal product of labor. b. the marginal revenue product of labor equals the price of their output. c. the wage rate equals the price of their output. d. the marginal revenue product of labor equals the wage rate.
In the presence of positive production externalities, a monopolist might produce the efficient output level.
Answer the following statement true (T) or false (F)
A social system in which rights are clearly defined and participants are free to exchange as they choose will tend to allocate resources to
A) their most efficient uses. B) their most highly valued uses. C) uses on which the highest monetary value is placed. D) uses which maximize social welfare. E) uses which produce the greatest good for the greatest member.
In the United States, the wage floor legislated by government below which it is generally illegal to pay workers is known as
A. the wage ceiling. B. the going wage. C. the employment gap. D. the minimum wage.