Do answer and explain plz. 5. Suppose that every extra cookie increases Abe's utility by four units. Which of the following must betrue?A. Abe's marginal utility of cookies is zero.B. Abe's marginal utility of cookies is increasing.C. Abe's marginal utility of cookies is diminishing.D. Abe's marginal utility of cookies is positive.6. For a perfectly competitive firm, which of the following statenment is wrong?A. It enjoys 0 profit in the long runB. It is a price takerC. It operates at PMCD. All of the above statements are wrong7. A firm has production function q = K²L2+ L, this firm exhibitsA. increasing return to scaleB. decreasing return to scaleC. constant return to scaleD. depends on the amount of capital and labor

* ANSWER :- *(5) The OPTION C (Abe's marginal utility of cookies is diminishing) is correct…

5. Suppose that every extra cookie increases Abe's utility by four units. Which of the following must be true? A. Abe's marginal utility of cookies is zero. B. Abe's marginal utility of cookies is increasing. C. Abe's marginal utility of cookies is diminishing. D. Abe's marginal utility of cookies is positive.

5. Suppose that every extra cookie increases Abe's utility by four units. Which of the following must be true? A. Abe's marginal utility of cookies is zero. B. Abe's marginal utility of cookies is increasing. C. Abe's marginal utility of cookies is diminishing. D. Abe's marginal utility of cookies is positive.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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