31) Which statement best illustrates the concept of diminishing marginal utility
ID: 1152960 • Letter: 3
Question
31) Which statement best illustrates the concept of diminishing marginal utility? A) As one consumes more hamburgers per week, one would be willing to pay a higher price for additional hamburgers. B) A decrease in the price of hamburgers will cause consumers to buy more hamburgers because they can afford to buy more C) Some consumers will receive less satisfaction from consuming hamburgers than from consuming fried chicken. D) A typical consumer will receive less satisfaction from consuming the fourth hamburger in a week than from the third hamburger.
34) When economists say that the supply for a product has increased, they mean that the A) supply curve has shifted to the left. B) product has become more expensive and thus consumers are buying less of it. C) product has become particularly scarce for some reason. D) supply curve has shifted to the right.
36) If the government places a tax on each gallon of gasoline produced, then this would cause a A) movement down along the current supply curve of gas. B) movement up along the current supply curve of gas. C) leftward shift in the current supply of gas. D) rightward shift in the current supply of gas.
39) If a subsidy is provided for the production of good X, this will shift the: A) demand curve for X to the left. B) supply curve for X to the left. C) demand curve for X to the right. D) supply curve for X to the right.
41) The upward slope of the supply curve reflects the A) fact that price and quantity supplied are inversely related. B) property of diminishing marginal product. C) law of increasing substitution. D) principle of specialization in production.
Explanation / Answer
31.Diminishing marginal returns states that as we consumes more and more unit of a good it's marginal utility falls and thus we are willing to pay less for each successive unit of the good.
Answer-d
34.When supply rises,the supply curve shifts to the right.
Answer-d.
36.When a tax is imposed on a product it's supply curve shifts to the left by the amount of tax.
Answer-C.
39.A subsidy shifts the supply curve to the right by the amount of the subsidy.
Answer-D.
41.Due to law of diminishing marginal product,the marginal cost increases with each additional unit of production.Due to this,firms need to charge more so that MR could continue to be equal to MC.
Answer-B.
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