Suppose That There Are Five Bottles of Lemonade, Each of Which
Suppose that there are five bottles of lemonade, each of which gives a consumer the same level of utility. According to the law of diminishing marginal utility, how can the consumer receive the highest utility?
A)Consume all five bottles in the next hour
B)Consume all five bottles today
C)Consume all five bottles in one day next week
D)Consume two bottles today and three tomorrow
E)Consume one bottle each day for the next five days
Suppose a friend gives you two pieces of gum, and you decide to have one piece now and save the other for tomorrow. You do this because:
A)the total utility you get from the two pieces of gum will be higher tomorrow.
B)the marginal utility you get from the second piece will be higher tomorrow.
C)the marginal utility you get from the second piece will be higher today.
D)the marginal utility you get from the first piece will be less today.
E)the total utility you get from the two pieces will be less tomorrow.
An "all you can eat" restaurant illustrates the economic principle:
A)of consumers' inability to maximize their total utility.
B)that economic theory clearly breaks down under certain circumstances.
C)that marginal utility is always positive.
D)that consumers will stop eating when marginal utility is zero.
E)that consumers will stop eating when total utility is zero.
If a dinner guest was serious when she said that she could never get enough of your cooking, you would conclude that the marginal utility of your cooking for her was _____.
C)increasing at an increasing rate
E)more than total utility