An Individual Gets 5 Units of Utility from One Slice

question 162

Multiple Choice

An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza.The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility.

• A)exactly 12
• B)less than 13
• C)less than 9
• D)more than 14

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Definitions:

Variable Annuity Contract

A retirement investment product that provides periodic payments to the holder, where the amounts can vary based on the investment performance of the selected options.

Prudent Investor Rule

An investment manager must act in accord with the actions of a hypothetical prudent investor.

Professional Investors

Individuals or entities that earn a living by managing and investing in various securities and asset classes on behalf of themselves or others.