The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period. This is the definition of the
A. Total revenue rule.
B. Law of demand.
C. Law of diminishing marginal utility.
D. Law of diminishing total utility.
Answer: C
You might also like to view...
What is the percentage of income received by the middle three quintiles on line Z?
If some inputs of production do not vary with the level of output we call them fixed inputs which when multiplied by their price become fixed cost. Which of the following items typically fit this category?
A. Insurance payments B. Interest on loans C. Property taxes D. All of these are fixed costs
The table above gives the total cost information for Hank and Helen's cherry farm. They sell their cherries in a perfectly competitive market, where the price is $6.00 per pound. If Hank and Helen produce and sell 6 pounds of cherries, what is their profit?
Select one: a. $6 b. $20 c. $28 d. $8
The existence of positive economic profits in an industry attracts new entrants into the industry.
Answer the following statement true (T) or false (F)