Marginal utility is _____.
a. always greater than total utility
b. utility that is not as good as normal utility
c. the extra utility derived from consuming one additional unit of a good or service
d. always positive
e. not related to total utility
QUESTION 2Total variable costs:
a. are costs associated with short-run fixed capital.
b. are so named because they vary from firm to firm within an industry.
c. increase as production increases.
d. decrease as production increases.
QUESTION 3If the price of capital falls, _____.
a. the supply of capital increases
b. the quantity supplied of capital decreases
c. the quantity supplied of capital increases
d. the quantity supplied of capital remains unchanged
e. the supply of capital decreases
QUESTION 4Total utility is determined by:
a. multiplying the quantity purchased of a good by the price of the good.
b. finding the additional utility gained from consuming one more unit of a product.
c. summing the marginal utilities for each successive units of a product consumed.
d. summing the number of units of a good consumed.
e. dividing the marginal utility derived from consuming a good by its price.
QUESTION 5If AVC is subtracted from the ATC, the result is:
a. economic profit.
b. accounting profit.
c. average fixed cost.
d. marginal cost.
QUESTION 6Which of the following will shift the demand curve for capital leftward?
a. Introduction of supercomputers in the resource market
b. A fall in the market interest rates
c. An increase in the price of capital
d. Business expectations of increased regulations
e. A rise in the equilibrium wage of labor
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