As More of a Good Is Consumed by an Individual

question 141

Multiple Choice

As more of a good is consumed by an individual,

• A)marginal utility increases.
• B)total utility initially increases.
• C)price falls.
• D)price increases.
• E)total utility stays constant.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

After Tax Profits

The net income a company retains after all its tax obligations have been settled.

Expected Cost

The forecasted cost of an action or decision, taking into account all known risks and uncertainties.

Expected Value

A statistical concept that calculates the average outcome of a random event when the process is repeated many times.