The statement that "as more of a good is consumed, its extra benefit declines" refers to
A. the law of diminishing marginal product.
B. the law of diminishing marginal utility.
C. the law of demand.
D. the law of comparative advantage.
Answer: B
You might also like to view...
Refer to Table 2-14. Does either Ireland or Scotland have an absolute advantage and if so, in what product?
A) Scotland only has an absolute advantage in producing guitars. B) Ireland only has an absolute advantage in producing motorcycles. C) Ireland only has an absolute advantage in producing guitars. D) Scotland has an absolute advantage in producing both products.
In the above figure, what happens to the firm's optimal level of output if the price it receives for its product increases from P2 to P3?
A) Output stays the same. B) Output decreases. C) Output increases. D) There is not enough information provided to know what happens to output.