Liz's Marginal Utility for Two Different Goods Is Determined by

question 207

Multiple Choice

Liz's marginal utility for two different goods is determined by

• A) her average utility for the two goods.
• B) how much benefit she gets from another unit of each of those goods.
• C) summing her total utility from consumption of each good and then dividing by two.
• D) All of the above answers are correct.

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Definitions:

Technologically Obsolete

A state where a product or equipment becomes outdated or no longer competitive due to advances in technology.

Discount Rate

This is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Salvage Value

The expected sale price of an asset at the end of its effective life.

Net Operating Cash Flows

The amount of cash generated by a company's normal business operations after paying operating expenses and taxes.