Assume the graph shown represents Dawn's budget constraint. If Dawn's income to spend on these two items increased and Dawn spends all her income on these two goods, then Dawn's total utility from consuming these two goods:
A. will likely go up, since she can afford more of both goods now.
B. will likely go down, since her marginal utility of additional items decreases the more she consumes.
C. will likely go down, since she is probably sick of these two things already.
D. will likely go up, since her marginal utility of additional items increases the more she consumes.
A. will likely go up, since she can afford more of both goods now.
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Capital is paid according to the value of its marginal product
a. only if earnings from capital are paid to households in the form of dividends. b. only if earnings from capital are kept within firms as retained earnings. c. regardless of whether earnings from capital are paid to households in the form of dividends or whether those earnings are kept within firms as retained earnings. d. None of the above is correct; unlike labor, capital is a factor of production for which earnings are unrelated to the value of marginal product.
Product variety is likely to be greater in:
A. monopolistic competition than in pure competition. B. pure competition than in monopolistic competition. C. homogeneous oligopoly than in monopolistic competition. D. homogeneous oligopoly than in differentiated oligopoly.