Marginal utility:
A) is equal to total utility divided by the number of units consumed.
B) is equal to total utility if the demand curve is linear.
C) increases as more of a product is consumed.
D) diminishes as more of a product is consumed.
Ans: D) diminishes as more of a product is consumed.
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Which of the following is a consequence of minimum wage laws?
A) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage. B) Employers will be reluctant to offer low-skilled workers jobs with training. C) All workers benefit when the minimum wage is increased. D) Low-skilled workers benefit because minimum wage increases the number of jobs providing low-skilled workers with training.
If a firm has no ability to select the price of its product, it:
a. will go out of business due to losses. b. is a price-maker. c. cannot maximize profit. d. has a horizontal individual demand curve.