Which Statement Is TRUE If the Principle of Diminishing Marginal

question 40

Multiple Choice

Which statement is TRUE if the principle of diminishing marginal utility applies?

• A)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie gives the same marginal utility.
• B)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie gives less marginal utility.
• C)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie lowers total utility.
• D)The total utility of pie is at a maximum,while the marginal utility of pie is still increasing.

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Definitions:

Tuition

The fee charged by educational institutions for instruction and training, typically assessed per term or per course.

Cost of Housing

The total expenses associated with acquiring and living in a home, including purchase price, rent, maintenance, and utilities.

Forgone Income

Income that is lost when an individual chooses not to engage in a certain activity or job, representing an opportunity cost.

Part-time Job

Employment with fewer hours per week than a full-time position, often offering flexibility but with lesser benefits.