If Total Utility Is Decreasing as More Units Are Consumed

question 86

Multiple Choice

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

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

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Definitions:

Cash Flows

The net amount of cash being transferred into and out of a business, essential for assessing its financial health.

Principle Due

refers to the outstanding balance of the principal amount of a loan or mortgage that needs to be paid.

Loan Terms

The conditions and agreements under which a loan will be made, including the interest rate, repayment schedule, and duration of the loan.

Growing Annuity

A series of escalating payments or receipts over a period, where each payment grows by a fixed percentage rate.