Catherine wanted to purchase a digital camera. Hence, she visited an online retailer's website to learn more about the different
1 answer:
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Answer:
Option (B) is correct.
Explanation:
The utility maximization point for a consumer is as follows:
It is given that,
price of Pepsi(x) = $1 per can
price of a hamburger(y) = $2
Marginal utility from Pepsi = 4
Marginal utility from hamburgers = 6
Hence,
4 > 3
Therefore, it can be seen that the consumer's utility is not maximized at this point.
Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.
So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.
Answer:
The demand curve will look like a straight line .
Explanation:
Perfect competition is that in which there are large number of buyers and large number of sellers of a commodity and no individual sellers or buyer can control the prices. If the seller try to influence the price then they will loss their buyers as there are many other seller also exist in the market.
Under perfect competition , the firm produce homogeneous product. Both buyers and sellers have full knowledge of the market.
The curve under perfect competition is indicated by horizontal . It shows that a firm can sell any quantity of a product at the prevailing price . And no quantity if they influence the price.
<u>The figure under shows the curve:</u>
