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The law of diminishing marginal utility states that as additional units are consumed, satisfaction per unit will decline. a. True b. False 2. A firm's marginal cost equals the: a. slope of the

The law of diminishing marginal utility states that as additional units are consumed, satisfaction per unit will decline.

a. True  
b. False  

2. A firm's marginal cost equals the:

  a.

slope of the demand curve under perfect competition.

 
  b.

slope of the total product curve when the latter is at its maximum.

 
  c.

change in total cost divided by the change in total output.

 
  d.

ratio of total cost to total quantity.

 
  e.

slope of the supply curve

3. The long-run average-total-cost curve connects the lowest cost for each level of output given by the short-run average-total-cost curves.

a. True  
b. False  

4. A(n) ____ is a price taker.

  a.

oligopoly firm

 
  b.

duopoly firm

 
  c.

monopoly firm

 
  d.

perfectly competitive firm

 
  e.

monopolistically competitive firm

 

5. Assume that a firm's marginal revenue curve intersects the rising portion of the marginal cost curve at 100 units of output. At this output level, the profit-maximizing firm’s total fixed cost is $600 and its total variable cost is $400. If the price of the product is $8 per unit, the firm should produce:

  a.

zero units of output.

 
  b.

less than 100 units of output.

 
  c.

more than 100 units of output.

 
  d.

100 units of output.

 
  e.

200 units of the output.

Aug 21 2021 View more View Less

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