Marginal utility is
A. the difference in price between one store and another.
B. the difference in value between “some” of a thing and “none” of a thing.
C. the difference between any two successive total utility figures.
D. acquired only with the first few units of a good or service.
E. utility that is barely satisfactory.
Answer: C
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Which of these statements is not true of both external cost and external benefit situations? a. They both can lead to market failure
b. They both cause welfare costs. c. They both make it possible for government intervention to lead to more efficient results. d. All of the above are true.
Assume that society places a higher value on the last unit of X produced than the value of the resources used to produce that unit. With no spillovers, this information means that:
A. total cost is greater than total revenue. B. price is greater than marginal cost. C. marginal cost is greater than price. D. resources are being overallocated to X.