Author Question: If other things constant, as more bananas are consumed, marginal utility eventually a. decreases at ... (Read 70 times)

Collmarie · **on:** Jul 1, 2018

If other things constant, as more bananas are consumed, marginal utility eventually
a. decreases at the same rate for all people
b. decreases at the same rate for all goods for a given person
c. increases at the same rate for all people
d. decreases at different rates for different people and for other goods
e. decreases at different rates for different people but at the same rate as other goods for an individual

Question 2

Carvel advertises a football-shaped ice cream cake for 7; you can buy a second one for only 4 . What do they know about consumer preferences?
a. Consumers would never buy a second ice cream cake.
b. Two cakes are worth less to the consumer than one.
c. Marginal utility of ice cream cakes diminishes.
d. Consumers only value the first cake at 4.
e. Consumers value all cakes they eat at 4.