As a general rule, the marginal utility derived from consuming a good will be less
a. if less rather than more of the good is consumed
b. as more of the good is consumed
c. only when total utility is at a maximum
d. only when the good is inferior
e. when less of another good is consumed
B
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Assume that production from a automobile manufacturer caused acid rain. If the government imposed a tax on the manufacturer equal to the cost of the acid rain, the government's action would
A) externalize the externality. B) eliminate all acid rain. C) force the manufacturer to move production to another location. D) internalize the externality.
The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. 
Based on the above, how much does the 12th unit of output add to the firm's total variable cost?
A. $5 B. $4 C. $2.50 D. $20 E. $40