For all goods other than those that are addictive, and assuming that the quantity consumed is not so large that the last units consumed generate negative marginal utilities, we can say that, for the consumer, as more of the good is consumed, its marginal utility _____ while its total utility _____
a. increases; decreases
b. decreases; increases
c. increases; increases
d. decreases; decreases
e. no general rule can be made here
B
Economics
You might also like to view...
Refer to the scenario above. What is likely to be the impact on Firm B's sales if Firm B decides to sponsor the event while Firm A decides not to sponsor the event?
A) A 10% increase in sales B) A 7% increase in sales C) A 2% increase in sales D) A 5% increase in sales
Economics
The opportunity cost of holding money balances rather than holding other assets is
A) the nominal interest rate. B) the price level. C) forgone consumption. D) forgone liquidity.
Economics