The concept of diminishing marginal benefits means that? __________.
A. the more of a good that you? consume, the lower is your overall benefit from that good.
B. each additional unit consumed is worth less to you than the previous one.
C. each additional unit consumed is worth more to you than the previous? one, but the additional benefit grows at a diminishing rate.
D. as you consume more of a? good, your willingness to pay for that good increases faster than the benefit you receive.
B. each additional unit consumed is worth less to you than the previous one.
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Suppose that a company hires recent college graduates for two types of jobs, sales people and credit analysts. The hours worked and skill levels are the same for both positions. The sales people get to travel to several desirable locations, whereas the credit analysts do not leave the home office. When comparing the salaries of the two positions, it is likely that the company pays the
a. sales people less as a compensating differential. b. credit analysts less as a compensating differential. c. same salary for both positions because they require the same skill level. d. same salary for both positions because it would be illegal to do otherwise.
Refer to the diagram and assume the economy is operating at equilibrium point w. If wages and other resource prices are flexible downward, in the long run a decrease in the price level from P 2 to P 1 would move the economy from point w to point:
A. v.
B. x.
C. t.
D. y.