Why does total utility rise at a decreasing rate as an individual's consumption of an item increases?
What will be an ideal response?
This is due to the principle of diminishing marginal utility. As more of any good or service is consumed, its extra benefit declines, meaning that the extra utility from consuming each additional unit of the item falls off as consumption increases.
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If the government decides to impose a new tariff on orange juice from Brazil, the tariff would lead to ________ the tariff revenue collected by the U.S. government
A) no change in B) an increase in C) a decrease in D) an elimination of E) making illegal
Which of the following is NOT true for monopoly?
A) The profit maximizing output is the one at which marginal revenue and marginal cost are equal. B) Average revenue equals price. C) The profit maximizing output is the one at which the difference between total revenue and total cost is largest. D) The monopolist's demand curve is the same as the market demand curve. E) At the profit maximizing output, price equals marginal cost.