As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility
A. Increases at a decreasing rate.
B. Is negative as long as marginal utility is decreasing.
C. Decreases as long as marginal utility is negative.
D. Decreases as long as marginal utility is positive.
Answer: A
You might also like to view...
Suppose the economy has a recessionary ga
A) raise real GDP without increasing the price level. B) raise real GDP and the price level. C) raise the price level alone, but cannot increase real GDP. D) raise real GDP and decrease the price level.
There is a technological advance in a perfectly market. Which of the following statements is NOT true?
A) As more firms begin to use the new technology, the market supply increases and the price falls. B) Technological change brings permanent gains to producers and temporary gains to consumers. C) In the new long-run equilibrium, all the old-technology firms have exited. D) In the long-run equilibrium, competition eliminates any short-run economic profit.