Charlie's Consumer Surplus from the First Slice of Pizza He

question 436

Multiple Choice

Charlie's consumer surplus from the first slice of pizza he buys is greater than the consumer surplus from the second slice because of

• A) decreasing marginal benefits.
• B) increasing marginal benefits.
• C) decreasing marginal costs.
• D) increasing marginal cost.

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Definitions:

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

Wage Cut

A reduction in the rate of pay received by an employee.

Quality Distribution

The spread or variance in quality levels among products, services, or outputs within a company or sector.

Appraiser

A professional who assesses the value of a particular item, often for property, art, or antiques.