Author Question: Marginal utility theory predicts that an increase in income means that the consumption of A) all ... (Read 110 times)

Charlie · **on:** Jun 29, 2018

Marginal utility theory predicts that an increase in income means that the consumption of

A) all goods will increase.
B) normal goods will increase and consumption of inferior goods will decrease.
C) inferior goods will increase and consumption of normal goods will decrease.
D) None of the above answers is correct.

Question 2

The figure above shows the marginal revenue and costs of a perfectly competitive firm. The marginal cost of the last unit produced is

A) 4 per unit.
B) 8 per unit.
C) 16 per unit.
D) None of the above answers is correct.