If Joey Kobayashi experiences diminishing marginal utility from eating hot dogs then
A) the marginal utility from the next hot dog Joey eats will be negative.
B) Joey is maximizing the marginal utility per dollar he receives from eating hot dogs.
C) the additional satisfaction he receives from eating another hot dog will be less then the satisfaction he received from his eating his last hot dog.
D) his total utility from eating hot dogs is negative.
Question 2
Refer to Figure 13-3. The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit.
Based on the diagram in the figure
A) X represents the gain (price effect) and Y the loss (output effect).
B) Y represents the gain (output effect) and X the loss (price effect).
C) X + Z represents the loss (output effect) and Y the gain (price effect).
D) X represents the loss (price effect) and Y + Z the gain (output effect).
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