Bill ate four hot dogs at the baseball game. The first one tasted best, but he found that as he ate more hot dogs the amount of extra satisfaction he was receiving was beginning to fall. This would demonstrate
A. law of zero utility
B. law of diminishing marginal utility
C. law of total utility maximization
D. law of diminishing costs
Ans: B. law of diminishing marginal utility
You might also like to view...
The "universal service" argument often requires that some products be sold at a loss while other products be sold at profits higher than normal
a. True b. False Indicate whether the statement is true or false
A Keynesian economist would expect a supply-side tax cut to shift
a. only the aggregate supply curve outward. b. only the aggregate demand curve outward. c. both the aggregate demand and aggregate supply curves outward. d. the aggregate supply curve outward and the aggregate demand curve inward.
Describe new growth theory. Explain how it differs from neoclassical growth theory
As the demand curve becomes steeper, the proportion of a sales tax paid by the seller
A. decreases. B. stays the same. C. increases. D. gets closer to zero.