16. In utility analysis, it is assumed that marginal utility diminishes as consumption of a product decreases. true or false

20. According to neuroeconomists, our logical brain knows we should spend as much as possible when we have money. true or flase

21. The table given below shows the average total cost of production of a firm at different levels of the output. Table 8.5

Quantity	Average Total Cost
1	$10
2	$6
3	$5
4	$5
5	$7

In Table 8.5, the marginal cost of producing the third unit of output is:

Group of answer choices

a. $3.

b. $7.

c. $6.

d. $4.

e. $8.

23. Fixed costs are costs paid for:

Group of answer choices

a. hiring temporary workers.

b. obsolete plant and equipment not used anymore.

c. resources that do not change with changes in output.

d. medical reimbursements and health insurance of workers.

e. plant and equipment in the long run.

24. Economies and diseconomies of scale are the reasons why short-run average total cost decreases and then increases. true or false

25. If the average total cost of producing 2 pounds of cheese is $4 and the average total cost of producing 3 pounds of cheese is $4.2, then the marginal cost of producing third pound of cheese is equal to:

Group of answer choices

a. $8.

b. $4.1.

c. $4.6.

d. $4.5.

e. $4.2.