Author Question: Suppose that there are five bottles of lemonade, each of which gives a consumer the same level of ... (Read 141 times)

haleyc112 · **on:** Jun 30, 2018

Suppose that there are five bottles of lemonade, each of which gives a consumer the same level of utility. According to the law of diminishing marginal utility, how can the consumer receive the highest utility?
a. Consume all five bottles in the next hour
b. Consume all five bottles today
c. Consume all five bottles in one day next week
d. Consume two bottles today and three tomorrow
e. Consume one bottle each day for the next five days

Question 2

The vertical distance between the average total cost curve and the average variable cost curve equals:
a. marginal cost.
b. average fixed cost.
c. total fixed cost.
d. total variable cost.