Author Question: The law of diminishing marginal utility means that: a. marginal utility is maximized when consumers ... (Read 109 times)

TVarnum · **on:** Jun 30, 2018

The law of diminishing marginal utility means that:
a. marginal utility is maximized when consumers get the same amount of total utility from every good they consume.
b. total utility is maximized when consumers get the same amount of marginal utility from the last unit of every good they consume.
c. beyond some point, added units of a product provide lower and lower amounts of marginal utility.
d. a consumer would get less utility from the last unit of a good consumed when that good costs 3 than when it costs 1.

Question 2

The value of the marginal product of a resource is equal to:
a. the marginal revenue of the firm, if the product market is perfectly competitive.
b. the market price of the product divided by the price of the resource.
c. the market price of the product divided by the marginal product of the resource.
d. the marginal revenue product of the resource, if the product market is perfectly competitive.
e. the marginal product of the resource divided by the price of the resource.