If the First Four Units of a Good Consumed Have

question 44

Multiple Choice

If the first four units of a good consumed have marginal utilities of 10, 9, 8, and 7, respectively, this trend is an indication of the:

• A) law of diminishing marginal utility.
• B) minimization of utility.
• C) law of consumer equilibrium.
• D) law of diminishing consumer surplus.

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Definitions:

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a given period, indicating the efficiency of inventory management.