-In the Table Above, Which of the Following Is TRUE

question 195

Multiple Choice

-In the table above, which of the following is TRUE?

• A) Jim and Sally have increasing marginal utility.
• B) Jim has increasing marginal utility and Sally has diminishing marginal utility.
• C) Jim has diminishing marginal utility and Sally has increasing marginal utility.
• D) Jim and Sally have diminishing marginal utility.

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Definitions:

Least-costly Combination

A perfect combination of resources that lowers the production cost while reaching a target output level.

Profits

Financial gains realized when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

Profit-maximizing Combination

An optimal mix of inputs or factors of production that results in the highest possible profit for a firm, given the costs and available resources.

Production Costs

Expenses incurred by a business in the process of creating a good or service, including raw materials, labor, and overhead.