Which of the following statements is true because of the principle of diminishing marginal utility?
A.When a customer continues to eat more pie at the Pie Palace, each additional piece of pie gives a larger amount of marginal utility.
B.When a customer continues to eat more pie at the Pie Palace, each additional piece of pie gives a smaller amount of marginal utility.
C.The marginal utility of a piece of pie is maximized when the total utility of pie is zero.
D.The total utility of pie is at a maximum while the marginal utility of pie is still increasing.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q5: Utility is the:
A)difference between a firm's total
Q8: For economists, the satisfaction an individual derives
Q8: The utility of a good is determined
Q26: When total utility is at a maximum,
Q239: How much _ _ Susan obtains from
Q241: (Table: Exercise and Utility) Look at the
Q244: 0
A.First
B.second
C.fourth
D.sixth
Q245: Which of the following statements is true?
A.If
Q246: (Table: Utility of Pecan Rolls) Look at
Q247: The principle of diminishing marginal utility:
A.refers to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents