The Concept of Diminishing Marginal Utility Is Embodied in the Utilitarian

question 32

Multiple Choice

The concept of diminishing marginal utility is embodied in the utilitarian rationale for which of the following

• A)trickle-down effects
• B)enhancing market efficiency
• C)redistributing income
• D)maintaining the status quo income distribution

---

Definitions:

Willingness to Pay

The maximum price at which a consumer will buy a good or service.

Basketball Sneakers

Athletic shoes designed specifically for playing basketball, offering features such as enhanced grip, ankle support, and shock absorption.

Consumer Surplus

The difference between the maximum price consumers are willing to pay and the actual price they do pay.

Lois's Consumer Surplus

Generally refers to a consumer surplus but appears to erroneously attribute it to an individual named Lois; consumer surplus is the difference between what consumers are willing to pay for a good or service versus what they actually pay.