If the First Four Units of a Good Consumed Have

question 209

Multiple Choice

If the first four units of a good consumed have marginal utilities of 60, 50, 40, and 30, respectively, this trend is an indication of the:

• A) maximization of utility.
• B) law of diminishing marginal utility.
• C) law of consumer equilibrium.
• D) minimization of utility.

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Definitions:

Labour Costs

The total expenditure incurred by employers for the payment of wages, benefits, and taxes associated with the employment of labor.

Constraints

Limitations or restrictions that affect the planning, process, or outcome of a project or operation.

Optimum

The most favorable condition or level for growth, reproduction, or efficiency.

Minimize

The act of making something as small or as insignificant as possible.