The concept of marginal utility:
A. explains why individuals find it difficult to maximize their total utility.
B. is the change in total utility that comes from consuming one additional unit of a good or service.
C. can only be applied to situations in which individuals can choose among several goods or services.
D. is the loss in utility from making a bad decision.
B. is the change in total utility that comes from consuming one additional unit of a good or service.
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A monopolistically competitive firm differs from a perfectly competitive firm in the long run in that
A) the demand curve faced by a monopolistically competitive firm is downward sloping, while the demand curve faced by a perfectly competitive firm is horizontal. B) profits are positive for a monopolistically competitive firm and zero for a perfectly competitive firm. C) profits are zero for a monopolistically competitive firm and positive for a perfectly competitive firm. D) marginal cost equals the market price for a monopolistically competitive firm but not for a perfectly competitive firm.
In a typical production function, the relevant factors of production are land, labor, capital, and
A. resources. B. raw materials. C. technology. D. entrepreneurship.