The Idea That the Utility a Consumer Derives from Successive

question 30

Multiple Choice

The idea that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases is known as

• A)the utility theory of demand.
• B)utility maximization.
• C)diminishing marginal utility.
• D)the paradox of value.
• E)diminishing total utility.

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Definitions:

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings, reflecting the residual assets of the company that would be returned to shareholders if all assets were liquidated and all debts paid.

Increase Assets

Enhancing the value of a company's resources or acquiring new physical, financial, or intangible properties that can provide economic benefits.

Decrease Assets

The reduction in the value or amount of the resources owned by a company, which can result from sales, disposal, or depreciation.

Accounting Equation

The fundamental equation underpinning the double-entry bookkeeping system: Assets = Liabilities + Equity.