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 principle of rational choice, if there is
diminishing marginal utility:
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As long as the principle of diminishing marginal utility is operating, any increased consumption of a...
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1. Which of the following statements best describes the law of diminishing marginal utility? Consumers will...
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and why? 11) The principle of diminishing marginal utility means that as you eat fewer slices...
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11) The principle of diminishing marginal utility means that as you eat fewer slices of pizza, your total utility from pizza will and your marginal utility from each additional slice of pizza will A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
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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
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
Indicate whether the following statements are True or False a)Total utility is the benefit received from...
Indicate whether the following statements are True or False a)Total utility is the benefit received from consuming an extra unit of a good b)According to the principle of diminishing marginal utility, as an individual consumes more and more of a good or service ,the total utility increases while the marginal utility decreases c)Tom's marginal utility from a Sobe exceeds his marginal utility of crackers.Therefore , his total utility of Sobe must exceed his total utility of crackers d)Marginal utility diminishes...
13. In economics, an individual person is assumed to be rational and self-interested seeking to maximize...
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3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1)...
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1) the difference between total and marginal utility. C) average utility. D) total utility. 34) The law of diminishing marginal utility states that A) beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. B) price must be lowered to induce firms to supply more of a product C) it will take larger and larger amounts of...
As long as the principle of diminishing marginal utility is operating, any increased consumption of a good lowers total utility. lowers marginal utility, but may raise total utility. lowers marginal utility and, therefore, total utility. Previous Next
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....
and why?
11) The principle of diminishing marginal utility means that as you eat fewer slices of pizza, your total utility from pizza will and your marginal utility from each additional slice of pizza will A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
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
13. In economics, an individual person is assumed to be rational and self-interested seeking to maximize utility in various ways including from the consumption of goods and services. What one does is to achieve a certain goal. So he/she is rational. Why one does is to feel good or happy. So he/she is a self-interested utility seeker. The term 'utility' means satisfaction or happiness. Utility is difficult to quantify. But for purposes of illustration we assume that people can measure...
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