For Most Goods,as the Number of Units Consumed Increases,total Utility

question 5

Multiple Choice

For most goods,as the number of units consumed increases,total utility ______,while marginal utility ______.

• A) increases;decreases
• B) decreases;increases
• C) increases;increases
• D) decreases;decreases
• E) peaks;bottoms out

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Definitions:

Cost Function

An equation that calculates the total cost of production based on the quantities of inputs used.

Output

The total amount of goods or services produced by a company or a production process.

Cost Function

A mathematical relationship that describes how the costs incurred by a firm change with various levels of output.

Profit-Maximizing

A strategy or approach taken by firms to adjust their production and pricing to achieve the highest possible profit.