1
Q
When buying socks, purchase of the second pair of socks lead to a decrease in satisfaction. This can be explained by what law?
A
Law of Diminishing Marginal Utility
2
Q
Law of Diminishing Marginal Utility suggests that?
A
As consumption of a good increase, the marginal utility will get smaller
microecons 😹
flashcards
Decks in class (8)
# Cards
-
31 Indifference curves & Budget lines4
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30 Utility2
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Cost and Benefit2
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Cost, Revenue, Profit, SR, LR production12
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Differing objectives and policies of firms18
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36 Growth and Survival of firms2
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38 Gov policies to achieve efficient resource allocation & correct market failure2
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40 Labour Market Forces and Government Intervention30
