The total utility of water is
A. lower than the total utility of diamonds, but the marginal utility is higher.
B. the same as the total utility of diamonds, but the marginal utilities are the same.
C. lower than the total and marginal utility of diamonds.
D. higher than the total utility of diamonds, but the marginal utility of diamonds is higher.
Answer: D
You might also like to view...
Based on this model, if the government uses a uniform standard
Suppose that two firms, X and Y, face the following abatement costs: MACX = 1.2AX, MACY = 0.3AY TACX = 0.6AX2 TACY = 0.15AY2 Further assume that the combined abatement standard is 40 units for both firms. a. the total abatement cost for firm X is $24 b. the total abatement cost for firm Y is $12 c. the combined total abatement cost for both firms is $1,200 d. the combined total abatement cost for both firms is $300
Suppose the socially optimal output is 134 units of a good and the market output is 95 units of the good. A possible reason the market produces "too little" is that
A. marginal private benefits are less than marginal social benefits. B. marginal private benefits are greater than marginal private costs. C. marginal private benefits are greater than marginal social benefits. D. marginal private costs are greater than marginal private benefits. E. b and c
The profit-maximizing output level minimizes average total cost.
Answer the following statement true (T) or false (F)
Suppose market demand and supply are given by Qd = 100 - 2P and QS = 5 + 3P. If the government sets a price floor of $30 and agrees to purchase all surplus at $30 per unit, the total cost to the government will be:
A. $1,125. B. $1,650. C. $1,375. D. $900.