Which of the Following Is True

question 157

Multiple Choice

Which of the following is true?

• A)It is possible for total utility to rise as marginal utility falls.
• B)Marginal utility is the same as total utility.
• C)As marginal utility falls, total utility always falls.
• D)a and c

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Definitions:

Marginal Product

The increase in output that results from employing one more unit of a factor of production, holding all other factors constant.

Labor Costs

The total expenses incurred by companies for the payment of wages, benefits, and taxes associated with the employment of labor.

Capital Costs

Expenditures for acquiring fixed assets such as buildings, machinery, and equipment, or the costs associated with improving existing assets.

Marginal Product

The rise in production resulting from one more unit of input.