When Marginal Utility Is Positive, Total Utility Is

question 13

Multiple Choice

When marginal utility is positive, total utility is:

• A) increasing.
• B) decreasing.
• C) zero.
• D) at its minimum.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to determine a company's financial health.

Terminal Value

The estimated value of a business or project beyond the explicit forecast period, often assumed to have a steady growth rate.

Salvage

Salvage relates to the estimated resale or scrap value of an asset at the end of its useful life, which is considered when calculating depreciation expenses.

Erosion

The gradual reduction or depletion of an asset's value or the profitability of a business operation, often due to external factors.