The following table describes utility for consuming cans of soda. Fill in the blank spaces and answer the following question: At what point does the law of diminishing marginal utility set in?Cans of SodaTotal utilityMarginal utility114 2 12336 444 5 6
A. Marginal utility never diminishes.
B. Between three and four cans
C. Marginal utility diminishes everywhere.
D. Between four and five cans
Answer: C
Economics
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A key component of the Keynesian model is that
A) people are not fooled by money illusion. B) prices are flexible. C) prices are sticky. D) wages are flexible.
Economics
A society can produce two goods: donuts and beer. The society's production possibility frontier is negatively sloped and "bowed outward" from the origin. As this society moves up its production possibility frontier, producing more and more units of donuts, the opportunity cost of producing beer
A. remains constant. B. decreases. C. increases. D. could decrease or increase depending on the technology.
Economics