Author Question: If Tom purchases and consumes an entire Pizza, which of the following is likely to be true? a. The ... (Read 35 times)

sc00by25 · **on:** Jun 30, 2018

If Tom purchases and consumes an entire Pizza, which of the following is likely to be true?
a. The total utility of the first two pieces will be positive and the marginal utility of the second piece will be negative.
b. The marginal utility of the second piece will be positive and the total utility of the first two pieces will be negative.
c. The total utility of the first two pieces will be positive and the marginal utility of the second piece will be less than the marginal utility of the first piece.
d. The marginal utility of the second piece will be positive and the total utility of the first two pieces will be less than the marginal utility of the first piece.

Question 2

Any kind of social regulation raises the per unit cost of production of a good and hence leads to a loss of producer and consumer surplus.
a. True
b. False
Indicate whether the statement is true or false