The marginal utility of a unit of good Y to Jane is
a. the additional utility that Jane gets from consuming one more unit of Y.
b. defined in money terms as the minimum amount Jane is willing to pay for that additional unit of Y.
c. defined in money terms as the maximum amount Jane is willing to pay for all the Y she buys except that additional unit.
d. All of the above are correct.
a
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Refer to Figure 5-7. Which of the following statements is true?
A) The optimal quantity of pollution reduction is QB. B) The optimal quantity of pollution reduction is QE. C) At QE the benefits of reducing pollution outweigh the cost of pollution reduction. D) At QB society is under allocating resources to pollution reduction.
A price control always benefits consumers
a. True b. False Indicate whether the statement is true or false