If Marginal Utility Is Positive but Diminishing, Then Total Utility

question 191

Multiple Choice

If marginal utility is positive but diminishing, then total utility must be ________ as consumption of the good increases.

• A) decreasing
• B) positive and rising at an increasing rate
• C) positive and rising at a decreasing rate
• D) positive and rising at any rate

Learn to evaluate cumulative net profits and the probability of positive outcomes using Crystal Ball.

Understand the recording of business transactions in journal entries.

Understand how business transactions affect financial statements.

Analyze and correct errors in trial balances and accounting records.

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Definitions:

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The cost of choosing one option over another, typically expressed as the value of the forgone alternative.

Output

The quantity of goods or services produced within a given timeframe.

Thinking At The Margin

The concept involves making decisions based on the additional benefit or cost of the next unit of production or consumption.