The law of diminishing marginal utility is in effect when marginal utility is
A. positive and increasing.
B. initially zero and then decreasing.
C. positive and decreasing.
D. initially zero and then increasing.
Answer: C
You might also like to view...
What are the two ways in which extractive institutions affect the number of entrepreneurs in a nation?
What will be an ideal response?
This question has you determine the effect of a tax on labor on the long-run cost function. Consider a firm with the production function f(L,K) = LK. The wage rate and rental rate on capital are w and r, respectively. a
Using the Lagrangian, derive the long-run cost function for this firm. b. Suppose the government taxes labor at by an amount t per unit of labor. Rewrite the long-run cost function including the tax. Hint: the effective wage rate is now w + t. c. Compute the marginal effect of the tax on the long-run cost function. To do so, compute the partial derivative of the cost function with respect to t. Does an increase in the tax increase the cost linearly?
Which of the following is shown on the horizontal axis of a Lorenz curve?
a. Cumulative share of population b. Cumulative percentage of total income received c. Cumulative distribution of wages per household d. Cumulative change in income per household
If a family falls below the federal poverty line, ______ considered to be poor.
a. every member over 18 is b. every individual member is c. only the employed members are d. only the children are