The fact that an ounce of gold is priced higher than an ounce of chocolate suggests that:
A. The marginal utility of the last unit of gold consumed is greater than the marginal utility of the last unit of chocolate consumed
B. The total utility of gold is greater than the total utility of chocolate
C. Gold is a normal good while chocolate is an inferior good
D. There are many substitutes for chocolate, but few for gold
A. The marginal utility of the last unit of gold consumed is greater than the marginal utility of the last unit of chocolate consumed
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What will be an ideal response?
Firms that can choose what price they will charge for their product and can increase the number of units sold by reducing price are called
a. price searchers. b. price leaders. c. purely competitive. d. price takers.