Assume That the Total Utilities for the Fifth and Sixth

question 206

Multiple Choice

Assume that the total utilities for the fifth and sixth units of a good consumed are 83 and 97, respectively.The marginal utility for the sixth unit is:

• A) -14.
• B) 14.
• C) 83.
• D) 97.

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Definitions:

Effective Interest Amortization

Effective Interest Amortization is a method of calculating the amortization of a bond's premium or discount, taking into account the time value of money.

Interest Accrual

The accumulation of interest on a loan or investment over time, which has been earned but not yet paid.

Common Stock Warrants

Certificates granting the holder the right to purchase common stock at a specified price within a certain period of time.