Question

Mary enjoys her first bite of apple pie after dinner more than the last bite before she says she cannot eat any more, even though there is no difference in the quality of the pie between the two bites. This illustrates:

	total surplus.
	utility.
	consumer surplus.
	diminishing marginal utility.
	Satisfaction

From an economic perspective, deadweight loss represents

	profits gained by the producers
	lost benefits for the society
	loss of money in private industries
	profits earned by the government
	loss of money for the government

Implicit costs are best described as

	variable costs.
	fixed costs.
	accounting costs.
	opportunity costs.
	sunk costs.

Answer 1

this means that the utility that she derived from the bite initially is more and it keeps on reducing and it will be the least at the end and this shows that there is diminishing marginal utility and the given scenario is a perfect example of that.

Therefore (d) diminishing marginal utility is the answer.

Deadweight loss is nothing but the loss of social surplus all the total surplus resulting from an event such as tax or subsidy etc. Therefore in an economic perspective deadweight loss can be seen as the loss of benefit to the society.

Therefore (b) lost benefits to the society is the answer.

Implicit cost actually get to represent the opportunity cost of the company when it gets to use the internal resources rather than sticking on to the external sources on the whole.

Therefore (d) opportunity cost is the answero.