Which of the Following Statements Is True Because of the Law

question 99

Multiple Choice

Which of the following statements is true because of the law of diminishing marginal utility?

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

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Definitions:

Collective Bargaining

The process where employers and unions negotiate terms of employment, including wages, working conditions, and benefits, to reach a mutual agreement.

Strike Contingency Plan

A strategy developed by employers to mitigate the effects of a potential strike, ensuring business continuity by outlining alternative labor sources, operational adjustments, and communication plans.

Bargaining Structure

The framework or system within which negotiations between employers and unions or employees take place.

Centralized

Refers to systems or processes that are controlled by a single central authority.