Diminishing marginal utility means that:
a. marginal utility is maximized when consumers get the same amount of total utility from every good they consume.
b. beyond some point, added units of a product provide lower and lower amounts of marginal utility
c. a consumer would get more utility from the last unit of a good consumed when that good costs $3 than when it costs $1.
d. both (b) and (c) are true.
d
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Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn. b. increase the supply of soybeans. c. decrease the supply of soybeans. d. decrease the supply of corn. e. have no effect on the supplies of corn and soybeans.
Table 19.2Quantity ConsumedTotal UtilityMarginal Utility115152 9330 4 3In Table 19.2, diminishing marginal utility occurs
A. With the first and third units only. B. With the second and fourth units only. C. With all units after the first. D. Only with the second unit.
In its role as the bankers' bank, a central bank performs each of the following, except:
A. providing deposit insurance. B. managing the payments system. C. overseeing commercial banks and the financial system. D. providing loans during times of financial distress.
Price discrimination occurs when a firm sells
A) a given product at different prices at different points in time. B) a given product at different prices to different ethnic groups. C) a given product at different prices unrelated to differences in cost. D) a given product at different prices when it is produced in different colors.