4. When a buyer purchases a good, each additional item of a certain type is less satisfying than the earlier ones. This is known as: a. The principle of increasing marginal utility b. The principle of gross marginal utility c. The principle of diminishing marginal utility d. The principle of consumer awareness 5. Efficiency comes about in perfectly competitive free markets when: a. Firms are motivated to invest resources in industries with a high consumer demand and move away from industries where demand is low. b. Firms are encouraged firms to minimize the resources they consume to produce a commodity and to use the most efficient technologies. c. Commodities are distributed among buyers such that buyers receive the most satisfying commodities they can purchase, given what is available to them and the amount they have to spend. d. All the above e. A & B 6. In a monopoly, there is only one seller, but other sellers can enter the market. a. True b. False 7. Monopolistic markets and their high prices and profits violate capitalist justice because the seller charges more than the goods are worth. Thus, the prices the buyer must pay are unjust. a. True b. False