Which of the following violates the law of diminishing marginal utility?
a. Phil's marginal utility from drinking another beer remains positive as he drinks more at a party
b. Phil's marginal utility from drinking becomes negative after 6 beers at a party.
c. Phil's total utility from drinking 5 beers at a party is greater than his total utility of drinking 3 beers at a party.
d. The more beer Phil drinks, the more he enjoys the next one.
d
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In the economic way of thinking, individuals make "choices" only when they
A) follow their narrow, selfish interests. B) enjoy perfect and complete information about the consequences of their actions. C) act responsibly. D) pursue one project while sacrificing another. E) have mastered the lessons of economic theory.
Explain why, when all adjustment have taken place, the perfectly competitive firm will operate at the minimum of its short-run and long-run average total cost curves and earn zero economic profit
What will be an ideal response?