The law of diminishing marginal utility means that:
a. marginal utility is maximized when consumers get the same amount of total utility from every good they consume.
b. total utility is maximized when consumers get the same amount of marginal utility from the last unit of every good they consume.
c. beyond some point, added units of a product provide lower and lower amounts of marginal utility.
d. a consumer would get less utility from the last unit of a good consumed when that good costs 3 than when it costs 1.
QUESTION 2The value of the marginal product of a resource is equal to:
a. the marginal revenue of the firm, if the product market is perfectly competitive.
b. the market price of the product divided by the price of the resource.
c. the market price of the product divided by the marginal product of the resource.
d. the marginal revenue product of the resource, if the product market is perfectly competitive.
e. the marginal product of the resource divided by the price of the resource.
QUESTION 3One of the drawbacks of horizontal fracking is that it drew workers from other industries to the fracking industry.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Which of the following is not true about utility?
a. Utility varies from individual to individual.
b. Marginal utility tends to decline, the more of a good or service is consumed.
c. When marginal utility is at its maximum, total utility is zero.
d. All of the above are true about utility.
QUESTION 5Which of the following statements is not true?
a. Assuming a perfectly competitive labor market, a firm selling in a monopolistic product market will have a lower marginal revenue product curve than a firm in a perfectly competitive product market.
b. The intersection of market-labor supply with market-labor demand establishes equilibrium in a perfectly competitive labor market.
c. In monopsonistic labor markets, an individual firm faces a positively sloped labor-supply curve.
d. In a perfectly competitive labor market, an individual firm can hire as many workers as it needs at the equilibrium wage rate
e. In a monopsonistic labor market, marginal revenue product is equal to the value of marginal product.
QUESTION 6Hydraulic fracking involves pumping millions of gallons of chemically treated water into the wells at pressures of 9,000 pounds per square inch or more.
a. True
b. False
Indicate whether the statement is true or false
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