Which of the Following Is Descriptive of the Law of Diminishing

question 29

Multiple Choice

Which of the following is descriptive of the law of diminishing marginal utility?

• A) The third hamburger consumed provides less utility than the second hamburger consumed.
• B) The third hamburger is priced higher than the first hamburger.
• C) As price falls,quantity demanded rises,ceteris paribus.
• D) The price of a good rises as the costs of producing that good rise.
• E) none of the above

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Definitions:

Gain From Trade

The benefits that countries or individuals obtain by engaging in international trade, allowing for the consumption of more goods and services than would be possible without trade.

Opportunity Cost

The loss incurred from ignoring the subsequent best alternative in a decision-making scenario.

Constant Rate

A steady, unchanging rate of change in a mathematical or economic process.

Comparative Advantage

The skill of any individual, enterprise, or country in producing a certain good or service with a lesser opportunity cost than that of their competitors.