If Marginal Utility Is Zero

question 23

Multiple Choice

If marginal utility is zero,

• A) total utility increases at a decreasing rate.
• B) total utility increases at an increasing rate.
• C) total utility is at a maximum.
• D) people will not consume the good even if the price is zero.

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Definitions:

Break-Even Sales

The amount of revenue required to cover both the variable and fixed costs of a business, indicating no profit and no loss.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.

Commercial Segment

A portion of a market composed of businesses and organizations, as opposed to individual consumers.

Wholesale Division

A segment of a company that deals with selling goods in large quantities at lower prices, typically to retailers or other businesses rather than direct to consumers.