Total utility will be at its maximum when
a. marginal utility is negative.
b. marginal utility is positive.
c. marginal utility is maximized.
d. marginal utility is zero.
d
You might also like to view...
According to classical growth theory, people earn only a subsistence real income because of growth in
A) technology. B) employment. C) population. D) labor productivity. E) capital.
If the marginal tax rate is equal to the average tax rate as taxable income increases, the tax structure is
A) proportional. B) unfair. C) progressive. D) regressive.
When negative externalities exist in a market, if the producers are forced to pay a Pigouvian tax then:
A. those who interact in the market will lose surplus. B. those who interact in the market will gain surplus. C. producers will gain surplus. D. those who do not interact in the market but are affected by the externality will lose surplus.
The aim of antitrust policy is to:
a. provide adequate incentives for inventors and entrepreneurs. b. prevent firms from acquiring or exercising undue market power. c. protect established firms by deterring new entry into industries. d. regulate the prices charged by perfectly competitive firms.