Refer to the following graph to answer the next six questions. This consumer experiences diminishing marginal utility

Refer to the following graph to answer the next four questions. Total utility will reach its maximum at the consumer’s ________ cupcake.

If a decrease in price results only in a small savings, the enhanced purchasing power is effectively

Rodrigo operates a dry-cleaning service and charges customers $5 per article of clothing. Based on his knowledge of operations, the 1,000th piece of clothing costs him $4.95 to dry-clean. If he takes additional business, however, the 1,001st piece will cost $5 for the service. Does he take the additional business?

Karla, a landscaper, is trying to decide whether to hire Anton, a student, to help her with a big job. She would pay him $20 per hour. Every task takes Anton three times as long to complete as it takes Karla. Karla is able to earn $90 per hour for her own time and has more landscaping jobs than she can handle. What is Karla’s opportunity cost of hiring Anton?

Refer to the following figure. At a price of $15, this market is experiencingClick to view larger image.

When the number of firms in a market decreases,

Decision makers engage in marginal thinking by

In economics, decisions are necessary because ________ are scarce, while ________ are practically unlimited.

According to economic thinking, the presence of scarcity requires