Which of the following is FALSE?
A) A consumer is maximizing total utility when he or she gets the same amount of marginal utility from the last dollar spent on each good purchased.
B) As additional units of a good or service are consumed, marginal utility diminishes.
C) Utility is want-satisfying power.
D) Assuming that the law of diminishing marginal utility holds, the demand curve must be upward sloping.
Answer: D
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Assuming a long-run aggregate supply curve, a decrease in taxes results in ________ in output and ________ in price level
A) no change; an increase B) an increase; no change C) a decrease; a decrease D) no change; a decrease
Refer to the graph below. When total revenue falls as output expands, marginal revenue is:
The following graph shows a total revenue curve for a monopolist.
A. Positive
B. Negative
C. Zero
D. Greater than demand at that output level