Which best illustrates the concept of diminishing marginal utility?
A) Gladys is hungry and the first piece of pizza she eats tastes wonderful! The fifth piece of pizza she eats makes her sick.
B) Thomas likes tomatoes more than Janice, and thus gets more utility from tomatoes than Janice does.
C) High Fly is a new low-cost airline. Initially, it is very expensive for High Fly to offer flights to customers because of the high start-up costs, but after covering fixed costs, the additional cost of adding one more consumer falls significantly.
D) Sarah likes hamburgers, but the price she is willing to pay for them is low compared with another good she also likes.
Correct Answer:
Verified
Q4: If the price of cantaloupe increases, the
Q5: Constant marginal utility means that marginal utility
Q6: Amy purchased four cantaloupes at $2 each
Q7: Use the following to answer questions:
Figure: Water
Q9: By assuming diminishing marginal utility, we mean
Q10: Everyone should shop at _ because they
Q11: Use the following to answer question 13:
Figure:
Q12: Use the following to answer questions:
Figure: Coffee
Q13: Which statement best illustrates the concept of
Q17: Consumers maximize their utility when:
A) the total
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