Explain the law of diminishing marginal utility. How does it relate to the shape of the demand curve?
What will be an ideal response?
The law of diminishing marginal utility states that each additional unit of a good consumed provides less and less additional satisfaction. Therefore, the amount that a person will be willing to pay for a product will fall as more of the product is consumed. This is one reason why demand curves slope downward.
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The IT industry in Techland has a Herfindahl-Hirschman Index of 1,320. This implies that the IT industry in Techland is ________
A) not concentrated B) moderately concentrated C) highly concentrated D) dominated by a few large buyers
Unemployment resulting from a mismatch of workers' skills and job requirements is called
A) frictional unemployment. B) structural unemployment. C) seasonal unemployment. D) cyclical unemployment.