Water has a ________ marginal utility and brings a ________ consumer surplus; diamonds have a ________ marginal utility and bring a ________ consumer surplus.
A) small; small; large; large
B) large; large; small; small
C) small; large; large; small
D) large; small; small; large
Question 2
As perfectly competitive firms leave a market because they are incurring an economic loss, the price of the good ________ and the economic loss of each remaining firm ________.
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
