Question

31. Which of the following is a clear example of the law of diminishing marginal utility? 0 As the price of his favorite candy bar rises, Martin buys fewer and fewer candy bars. O Julia eats three cookies. She takes 20 seconds to eat the first one, 1 minute to eat the second one, and 3 minutes to finish the third one. O Marta develops an allergy to milk. She drinks less of it each month as the allergy gets worse. O Young joey wants his mother to read him the same story over and over again and he is equally thrilled every time she reads it. 32. When comparing a monopoly and perfect competition, a deadweight loss occurs because O monopoly output is lower but its price is higher than those of a perfectly competitive industry. O monopoly output is higher but its price is lower than those of a perfectly competitive industry O both monopoly output and price are lower than those of a perfectly competitive industry. O both monopoly output and price are higher than those of a perfectly competitive industry 3. Which type of payment would NOT be a market transaction? O payment for purchase of shares at a stock exchange O payment made to a disaster victim payment for a used book purchased on eBay O payment for a soft drink at a vending machine

Answer 1

31) Julia eats three cookies. She takes 20 seconds to eat the first one, 1 minute to eat the second one, and 3 minutes to finish the third one.

32) monopoly output is lower but it's price is higher than those of a perfectly competitive industry.

33) payment made to a disaster victim.

Disaster victim does not give anything in return and thus it does not count as market transaction.