A local restaurant offers an all you can eat ribs special. You pay 11.95, and then you can eat as ...

A local restaurant offers an all you can eat ribs special. You pay 11.95, and then you can eat as many servings as you desire at no additional cost. It would follow that you will stop eating when:
 a. your marginal utility (or value) derived from eating another serving is zero.
  b. your total utility (or value) derived from all of the servings consumed just equals 11.95.
  c. your marginal utility (or value) derived from another serving equals 11.95.
  d. it is physically impossible for you to eat any more.

QUESTION 2

To maximize its profit, a monopoly should choose a price where demand is:
 a. elastic.
  b. inelastic.
  c. unitary elastic.
  d. vertical.

QUESTION 3

If Mr. Smith thinks the last dollar spent on shirts yields less satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should:
 a. decrease his spending on cola.
  b. decrease his spending on cola and increase his spending on shirts.
  c. increase his spending on shirts.
  d. increase his spending on cola and decrease his spending on shirts.

QUESTION 4

At the point where the marginal revenue equals zero for a monopolist facing a straight-line demand curve, total revenue is:
 a. greater than 1.
  b. maximum.
  c. less than 1.
  d. equal to zero.

QUESTION 5

The demand curve is downward-sloping because of the law of ____.
 a. diminishing marginal utility
  b. diminishing consumer equilibrium
  c. consumer equilibrium
  d. diminishing utility maximization