As the Quantity of a Good Consumed Increases, Its Marginal

question 130

Multiple Choice

As the quantity of a good consumed increases, its marginal utility ________ and its total utility ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Substantial Performance

A contract law principle that allows for partial enforcement of a contract when most, but not all, aspects of the contract have been fulfilled.

Impossibility

A legal defense where a party claims it was not possible to fulfill the terms of a contract due to unforeseen circumstances.

Commercial Impracticability

A legal doctrine that excuses a party from fulfilling a contract due to unforeseen and extreme difficulties or expenses.

Adequacy of Consideration

The sufficiency of value exchanged in a contract that must be present for the agreement to be legally binding.