If a Product Has a High Marginal Utility,then

question 59

Multiple Choice

If a product has a high marginal utility,then

• A)Consumers will not purchase any more of the good.
• B)The demand curve will be downward-sloping.
• C)A consumer is willing to pay a high price for it.
• D)Consumers will also have a low total utility.

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Definitions:

Marginal Revenue

The additional income that is produced from selling one more unit of a good or service; a crucial concept in determining the optimal level of output for a firm.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a product.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Ease Of Entry

Refers to the absence of barriers for new competitors to enter an industry or market.