1- According to the principle of rational choice, if there is diminishing marginal utility: A) and...
1- According to the principle of rational choice, if there is diminishing marginal utility:
A) and the price received for supplying a good goes up, you supply less of that good.
B) and the price received for supplying a good goes up, you supply more of that good.
C) the decision producers face about how much to supply is not affected.
D) after a certain point, even if the price goes up, you don't supply more of that good.
Homework Answers
Answer
Option B
B) and the price received for supplying a good goes up, you supply more of that good.
A diminishing marginal utility for producer means the marginal cost is increasing. Produce maximize profit at MR=MC. If the price increases then the profit-maximizing output level goes up and the producer supply more of the good.
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1) According to the diagram below, what is the marginal utility for the 3rd unit? 2)...
1) According to the diagram below, what is the marginal utility
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a. Yes, because 10 is less than 15
b. Yes, because it’s increasing but leveling off
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2 . 8) Diminishing marginal utility means that A) marginal utility decreases as consumption decreases. B) marginal utility increases as consumption increases. C) marginal utility decreases as consumption increases. D) total utility decreases as marginal utility decreases E) total utility decreases as marginal utility increases. 9) Which of the following is the best example of how the invisible hands works? A) The government places restrictions on prices of products, B) The government decides to force firms to produce more electricity....
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1) According to the diagram below, what is the marginal utility
for the 3rd unit?
2) Does the diagram below properly depict the “Law of
diminishing marginal utility?”
a. Yes, because 10 is less than 15
b. Yes, because it’s increasing but leveling off
c. Depends on which good this represents
d. No, because Total Utility keeps increasing
Total Utility 18 15 10 2 3 Quantity
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