The Principle of Marginal Rate of Substitution States That the More

question 453

Multiple Choice

The principle of marginal rate of substitution states that the more chocolate Susan consumes in proportion to coffee, the coffee she is willing to substitute for another piece
Of chocolate.

• A)diminishing; less
• B)diminishing; more
• C)increasing; less
• D)increasing; more

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Definitions:

Turnover Costs

Expenses associated with replacing personnel, including recruiting, hiring, and training new employees.

Minimum Wage

The lowest legal hourly pay rate that employers can offer to workers.

Quantity Supplied

The total amount of a product or service that sellers are willing and able to sell at a given price, over a specified period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.