Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9, and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5 . Given the above information,
a. the marginal cost of the third unit is greater than the marginal cost of the first unit.
b. the marginal cost of the fourth unit is the same as the marginal cost of the
second unit.
c. the average variable cost of four units is the same as for three units.
d. both (b) and (c) are correct.
d
Economics
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Which of the following is likely to occur as the result of the law of diminishing marginal utility?
A) Petra's utility from her second apple was less than her satisfaction from her first orange. B) Hudson enjoyed his second slice of pizza more than his first. C) Sabine's utility from her first granola bar is greater than Rachel's utility from her second granola bar. D) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant.
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