What Is the Correct Expression for Marginal Utility

question 22

Multiple Choice

What is the correct expression for marginal utility?

• A)It is equal to total utility divided by quantity consumed.
• B)It is the change in total utility resulting from a change in the quantity consumed.
• C)It is equal to total utility divided by the quantity demanded.
• D)It is equal to the additional utility divided by the quantity consumed.

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life, often used in calculating depreciation or lease payments.

Depreciation

The purposeful spreading of the financial burden of a physical asset over its active life.

Accumulated Depreciation

The total amount of depreciation expensed over an asset's useful life, reducing its book value on the balance sheet.

Commercial Substance

A concept in accounting that indicates a transaction has caused a significant change in future cash flows.