Along a downward-sloping linear demand curve
A) the marginal utility from the consumption of each unit of the good rises and the total utility from consuming larger quantities remain constant.
B) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities remain constant.
C) the marginal utility from the consumption of each unit of the good falls and the total utility from consuming larger quantities increases.
D) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities increase.
Question 2
Refer to Table 13-5. What are the firm's profit-maximizing or loss-minimizing price and quantity?
A) price = 12; quantity = 4.
B) price = 10; quantity = 5.
C) The firm should shut down temporarily.
D) This cannot be determined from the information given.
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