The principle of diminishing marginal utility says that:
a. as more of a good or service is consumed, demand decreases.
b. as more of a good or service is consumed, the price will rise.
c. the marginal utility of additional units consumed increases.
d. an increase in income causes demand to increase.
e. the marginal utility of additional units consumed decreases.
e
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The law of increasing relative costs, depicted by the concavity of the production possibilities frontier, is most closely related to the
A. downward slope of the demand curve. B. upward slope of the demand curve. C. downward slope of the supply curve. D. upward slope of the supply curve.
Refer to Figure 4.2. A Nash equilibrium exists
A) only where all three players go to the movie theater. B) only where all three players go to the bowling alley. C) where all three players go to the movie theater and where all three players go to the bowling alley. D) These is no Nash equilibrium in this game.
The total earnings of a worker are represented by E = 150 + $12(24 ? L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 16 hours of leisure per day?
A. $278 B. $342 C. $96 D. $246
Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting:
A. profits were $100,000 and its economic profits were zero. B. profits were zero and its economic losses were $500,000. C. losses were $500,000 and its economic losses were zero. D. profits were $500,000 and its economic profits were $1 million.