a. the law of diminishing marginal utilityb. the law of increasing total utility.c. the substitution effectd. the income effect17. The costs associated with variable factors of production areassociated withfactors of production arecosts.a. variable; fixed; fixedb. fixed; fixed; variablec. variable; fixed; variabled. fixed; fixed; fixed.Exhibit: Consumer Equilibrium 3Quantity of A perperiodQuantity of B per periodcosts and the costs18. (Exhibit: Consumer Equilibrium 3) The highest level of utility shown in the exhibit isassociated with:a. indifference curve X.b. indifference curve Y.c. indifference curve Z.d. either indifference curve Y or Z.19. Assume that the total utilities corresponding to the first five units of a product consumed are14, 20, 25, 29, and 32, respectively. The marginal utility of the third unit is:a. 5.b. 6.c. 20.d. 25.20. A factor of production whose quantity cannot be changed during a particular period is a:

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17. The costs associated with variable factors of production are associated with factors of production are costs. a. variable; fixed; fixed b. fixed; fixed; variable c. variable; fixed; variable d. fixed; fixed; fixed costs and the costs

17. The costs associated with variable factors of production are associated with factors of production are costs. a. variable; fixed; fixed b. fixed; fixed; variable c. variable; fixed; variable d. fixed; fixed; fixed costs and the costs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a. the law of diminishing marginal utility
b. the law of increasing total utility.
c. the substitution effect
d. the income effect
17. The costs associated with variable factors of production are
associated with
factors of production are
costs.
a. variable; fixed; fixed
b. fixed; fixed; variable
c. variable; fixed; variable
d. fixed; fixed; fixed.
Exhibit: Consumer Equilibrium 3
Quantity of A per
period
Quantity of B per period
costs and the costs
18. (Exhibit: Consumer Equilibrium 3) The highest level of utility shown in the exhibit is
associated with:
a. indifference curve X.
b. indifference curve Y.
c. indifference curve Z.
d. either indifference curve Y or Z.
19. Assume that the total utilities corresponding to the first five units of a product consumed are
14, 20, 25, 29, and 32, respectively. The marginal utility of the third unit is:
a. 5.
b. 6.
c. 20.
d. 25.
20. A factor of production whose quantity cannot be changed during a particular period is a:

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