Marginal Utility

question 114

Multiple Choice

Marginal utility

• A)increases as more of a good is consumed
• B)increases as the total utility of consuming a good increases
• C)is the same as the utility of consuming a good
• D)is the same as the utility of consuming an additional unit of a good
• E)is the same for all units of a good,but varies from one consumer to another

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Definitions:

Import Quota

A government-imposed limit on the quantity of a certain good that can be imported into a country, used to protect domestic producers.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability.

Coffee

A beverage made from brewed coffee beans, widely consumed globally and subject to market dynamics affecting its price and supply.

Quota Rents

The earnings that accrue to the licensee of an import license when the government imposes a quota.