Exhibit 6-8 Consider Exhibit 6-8

question 36

Multiple Choice

Exhibit 6-8 Consider Exhibit 6-8.Which of the following best describes what it reveals about total and marginal utility for baseball game tickets?

• A)Marginal utility is constantly pulling total utility down, until eventually it becomes negative.
• B)Marginal utility is constantly pulling total utility up and will continue to increase total utility as long as the person consumes more goods.
• C)Marginal utility is constantly pulling total utility up, but by less each time.
• D)At first marginal utility is positive and pulls total utility up but at a decreasing rate; then marginal utility becomes negative and pulls total utility down.
• E)At first marginal utility is positive and pulls total utility up, but then it becomes negative and makes total utility become negative as well.

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Definitions:

Product Demand

The desire and willingness of consumers to purchase a specific quantity of a good or service at a given price over a specific period.

Resource Prices

Costs associated with the inputs used in the production of goods and services, such as materials and labor.

Economic Profits

represent the difference between a firm's total revenues and its total costs, including both explicit and implicit costs, reflecting excess earnings over opportunity costs.

Purely Competitive

Describes a market structure characterized by many sellers and buyers, where no single entity has the power to influence the market price.