Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

(a)[12]

Explain how the idea of diminishing marginal utility can be used to build a demand curve for the product, and whether that reasoning still holds for demand for tickets for the exhibitions.

(b)[13]

Discuss whether the law of diminishing returns is in conflict with the concept of economies of scale.

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