1. According to the law of diminishing marginal utility

Multiple Choice

A. as you consume less of something, your total utility will decrease.

B. as you consume less of something, your marginal utility from consuming that good will increase.

C. you should never consume more of something if your marginal utility is decreasing.

D. if your total utility is increasing as you consume more of something, then your marginal utility must be increasing as well.

2. A price-taking firm makes air conditioners. The market price of one of its new air conditioners is $120. The firm'stotal cost information is given in the table below: Instructions: Calculate marginal cost, and enter your responses as whole numbers.

Air conditioners per day	Total cost ($ per day)	Marginal cost ($ per day)
1	100	100
2	150
3	220
4	310
5	405
6	510
7	650
8	800

How many air conditioners should the firm produce per day if its goal is to maximize its profit? Blank air conditioners per day

3. Which of the following is NOT a characteristic of a perfectly competitive market?

Multiple Choice

A. Each firm in the market sells a somewhat different variant of the good.

B. There are many sellers, each of which sells only a small fraction of the total quantity exchanged.

C. Buyers and sellers are well-informed.

D. Sellers can easily buy and sell the productive resources needed to enter the market.