Which of the Following Is Not a Prediction of Marginal

question 116

Multiple Choice

Which of the following is not a prediction of marginal utility theory?

• A)Other things remaining the same, the higher the price of a good, the smaller the quantity demanded.
• B)Other things remaining the same, the lower the price of a good, the greater the quantity demanded.
• C)Other things remaining the same, the lower the price of a good, the smaller is the consumption of substitutes for that good.
• D)The law of demand.
• E)Diminishing marginal utility.

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Definitions:

Markets For Factors Of Production

The markets where services of the factors of production (namely labor, capital, and land) are bought and sold.

Construction Company

A business entity focused on building, repairing, maintaining, or demolishing structures, such as buildings, roads, and bridges.

Investment Firm

A company that invests the funds of clients in a variety of assets with the goal of generating financial returns.

Capital Input

Capital input refers to the amount of physical assets used in the production process, including buildings, machinery, and equipment.