The Amount by Which Total Utility Rises When an Additional

question 164

Multiple Choice

The amount by which total utility rises when an additional slice of pie is consumed is called:

• A)average utility.
• B)the law of diminishing returns.
• C)incremental utility.
• D)marginal utility.

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Definitions:

Ford Motor Company

An American multinational automaker founded by Henry Ford, known for revolutionizing the automobile industry.

Constant Returns to Scale

A condition where increasing all inputs by the same proportion results in an increase in output by that same proportion.

Minimum Efficient Scale

The smallest level of production at which long-run total average costs are minimized.

Diseconomies of Scale

A situation where a company or organization grows so large that the costs per unit increase, leading to reduced efficiency.