Refer to the diagram. Total utility:
A. increases so long as additional units of Y are purchased.
B. becomes negative at 4 units.
C. increases at a diminishing rate, reaches a maximum, and then declines.
D. is maximized at 2 units.
C. increases at a diminishing rate, reaches a maximum, and then declines.
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Which of the following is a determinant of price elasticity of demand?
a. Availability of substitute goods b. Excess capacity c. Scale of production d. Inventories e. Cost of production
Suppose that you want to build a community garden for your neighborhood, which has 500 residents. The cost of the garden is $2,000 . and each person values the garden at $3 . After a month, you have only received 75 donations at $3 each. The result is that
a. the local government should build the garden, but you should not. b. you should still build the garden, but the local government should not. c. neither you nor the local government should build the garden. d. either you or the local government should build the garden.