Diminishing marginal utility: Marginal utility per dollar: I Income effect: Substitution effect: Diseconomies of scale: Explicit vs. implicit costs: 2 Editing A) Define (in your own words,) and give a strong, unique, example for the following terms. elasticity of demand: elasticity of supply: I cross-price elasticity of demand: Income elasticity of demand: Price elasticity of demand: Inelastic: Unit Elastic: Editing

For each of the following cases, determine whether the firm should (A) Use more labor and less capital, or (B) Use more capital and less labor. 1. The marginal rate of technical substitution is 2 (i.e., the marginal product of labor is twice the marginal product of capital) and the input price ratio is 3 (i.e., a unit of labor costs three times as much as a unit of capital) 2. The marginal rate of technical substitution is 2 (i.e., the marginal product of labor is twice the marginal product of capital) and the input price ratio is 1 (i.e., a unit of labor costs the same as a unit of capital) 3. The marginal rate of technical substitution is initially equal to the input price ratio, but the firm's machines depreciate, so that the marginal product of capital decreases. 4. The marginal rate of technical substitution is initially equal to the input price ratio, but the firm successfully negotiates a lower rate of rent for their machines, so that the price of capital decreases. 5. The…

Uncertain which options match each blank: a. Decreases, and therefore the curve shifts down b. Is unaffected, and therefore the curve does not shift c. Increases, and therefore the curve shifts up

The marginal utility of additional units of a product tends to: Go up Go down Remain constant There is no marginal utility beyond the first unit.