Marginal Utility

question 32

Multiple Choice

Marginal utility

• A) occurs when total utility declines as consumption increases.
• B) is the additional satisfaction derived from consuming one more unit of a good or service.
• C) is the combination of goods and services that maximizes utility for a given income.
• D) occurs when a consumer buys more of a good as a result of a relative price change.
• E) occurs when there is a change in purchasing power as a result of a change in the price of a good.

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Definitions:

Binding Contract

A legal agreement between two or more parties that is enforceable by law.

Entores Ltd.

A landmark case in contract law that established the principle that an acceptance of an offer becomes effective when communicated.

Telex

A communication network system used to send text messages through a network of teleprinters, historically significant before the advent of modern digital communications.

Postbox Rule

A legal principle that deems an offer accepted once the acceptance is posted, not when it is received by the offeror.