John Loves to Travel

question 82

Multiple Choice

John loves to travel. He would never turn down the opportunity to go on a trip. This means that, for John:

• A) the total utility of travel always increases.
• B) marginal utility of travel never decreases.
• C) the law of diminishing marginal utility does not apply to travel.
• D) marginal utility of travel is always zero.
• E) extra travel yields zero consumer surplus.

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Definitions:

Basis For Conclusions

A document accompanying various accounting and financial reporting standards, explaining the reasoning behind the decisions made during their development.

Exit Price

The estimated amount that could be received from selling an asset or transferring a liability in an orderly transaction between market participants.

Arm's Length Transaction

A transaction in which the parties involved act independently and have no relationship with each other, ensuring that the transaction is conducted on market terms.

Inactive Market

A market where there are few transactions, making it difficult to determine a fair price for financial assets due to lack of liquidity.