If Total Utility Is Increasing as More Units Are Consumed

question 65

Multiple Choice

If total utility is increasing as more units are consumed, then marginal utility must be

• A) increasing.
• B) positive.
• C) increasing at an increasing rate.
• D) decreasing at an increasing rate.
• E) negative.

---

Definitions:

Increase In Profit

The growth in net earnings resulting from operations, often driven by increased sales, cost reduction, or improved productivity.

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause increasingly larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Supply Chain

A network between a company and its suppliers to produce and distribute a specific product to the final buyer.

Internet-Based Inventory

Inventory management systems that use internet technologies to monitor and manage the stock levels of products.