If marginal utility is a positive number,
A. the more you purchase, the more total utility you get.
B. the more you purchase, the less total utility you get.
C. utility is not affected by more purchases.
D. then you are as well off as possible.
Answer: A
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Which of the following is an important lesson that can be drawn from the experience of the Great Depression?
a. Frequent shifts in monetary policy can help smooth out unstable economic conditions during a recession. b. Trade restrictions can "save jobs" and expand total employment during an economic downturn. c. The good intentions of political decision-makers are no substitute for sound policy. d. The federal government should always balance its budget during a recession.
If a firm is forced to take external costs into account, it will
A) reduce production and charge a higher market price. B) increase production and charge a lower market price. C) reduce prices and hire more workers. D) reduce prices and hire fewer workers.