Answer the following question in your own words without quoting anyone:
What is thediminishingmarginal concept? Is there a parallel between
diminishingmarginalutility in consumption and diminishing returns in
production? Describe any similarities you see.
For this problem, assume that Joe has $80 to spend on books and movies each month and that both goods must be purchased whole (no fractional units). Movies cost $8 each and books cost $20 each. Joe's preferences for movies and books are summarized by the following information:
In your own words, explain thelaw of demand through the income and substitution effects, using a price increase as a point of departure for your discussion.
Explain thelaw of demand in terms of diminishingmarginalutility.
To say that you can't have too much of a good thing means that for any good that you enjoy (say pizza),
a. higher consumption will always lead to greater utility
b. higher consumption will cause utility to increase at an increasing rate
c. higher consumption will increase utility but only up to a point; after that utility wil
In the workplace you will often see diminishingmarginalutility, where theutility (satisfaction experienced per hour of work) experienced by workers drops as they perform their jobs over time. As a manager, what are some practical things you could do to raise utility for employees that also benefit the firm? In your answer us
Which of the following is not true about thelaw of diminishing returns?
a. It is a short run phenomenon.
b. It refers to diminishingmarginal product.
c. It will have an impact on the firm's marginal cost.
d. It divides Stage I and II of the production process.
e. All of the above are true.