Utility Theory Assumes That Marginal Utility

question 219

Multiple Choice

Utility theory assumes that marginal utility:

• A) increases as an individual consumes more of a product.
• B) decreases as an individual consumes more of a product.
• C) is zero as long as the individual derives utility from the product.
• D) is constant as long as the individual derives utility from the product.
• E) is constant as long as the individual derives satisfaction from the product.

---

Definitions:

National Differences

Variations in cultural, economic, legal, and political systems across countries that can affect how businesses operate internationally.

Cost And Quality

Describes the relationship between the cost of producing a good or service and its quality, often indicating that higher quality can lead to higher production costs.

Global Convergence

The process by which ideas, goods, and services spread and integrate across different cultures and countries, leading to increased similarity.

Infrastructure Development

The construction and improvement of foundational services and facilities such as roads, bridges, water supply, and electricity networks that are necessary for economic development.