Define Marginal Utility
Marginal Utility: It is addition more to the net or total utility as consumption is increased by one more unit of commodity.
Assume that half of the world population, randomly certain, was magically vaporized through space aliens, although no other aspect of life onto Earth was influenced. Ignoring any psychological trauma that calamity might entail, upon average, the economic
When Nostalgia Corporation maximizes profit in its production of Silver Screen DVDs, in that case its average production cost per DVD will be roughly: (i) $3 per copy. (ii) $5 per copy. (iii) $7 per copy. (iv) $9 per copy. (v) $11 per copy.
The needs standard for income distribution would certainly involve: (w) difficulty in the measurement of productivity. (x) an enormous bureaucracy. (y) greater incentives for production than the contribution standard. (z) economic ef
What are your views about tourist’s use of natural resources?
For normal goods which experience price changes, then the income effect: (i) Recognizes how higher money income influences demands for goods. (ii) Invalidates the diminishing marginal utility law. (iii) Offsets the substitution effect. (iv) Reinforces the substitution
Which of the given would NOT be taken as predatory behaviour: (w) Rapid technological innovation. (x) Reducing prices due to a commodity surplus. (y) Duplicative products intended to absorb shelf space. (z) Introduction of close substitutes for rivals
When households become increasingly willing to defer current consumption in order that they can enjoy greater future consumption, in that case the: (1) interest rate rises. (2) equilibrium investment level rises. (3) present value of
An increase in the price of goods, outcomes in an increase in expenses on it. This demand is elastic or inelastic? Answer: Inelastic since there is direct relation
A firm within an imperfectly competitive market is: (w) more likely to advertise than a purely competitive firm. (x) less probable to advertise than a purely competitive firm. (y) neither more nor less probable to advertise than a pure competitor. (z)
Firms are not only trying to differentiate their products within the minds of consumers while: (1) main networks launch comparable programs to mimic successful “reality TV” shows. (2) beer advertisers feature wild parties in TV advertisements. (3) a deterg
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