If Marginal Utility Is Positive, Then Total Utility Is

question 54

Multiple Choice

If marginal utility is positive, then total utility is

• A)constant
• B)negative
• C)increasing
• D)decreasing
• E)0

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Definitions:

Expected Outcome

The anticipated result of an action, decision, or event, based on current knowledge, probabilities, and reasoning.

Utility

In economics, the satisfaction or benefit derived by consuming a product or service.

Insurance Policy

A contract between an insurer and a policyholder in which the insurer agrees to compensate the policyholder for loss or damage specified in the policy, in exchange for premiums paid by the policyholder.

Expected Utility

A theory in economics that calculates the utility expected from risky or uncertain investments, aiming to quantify preferences over risky alternatives.