If Tom's Total Utility from Watching One More Minute of Television

question 204

True/False

If Tom's total utility from watching one more minute of television increases but the increase for each additional minute is smaller than the previous minute, he has diminishing marginal utility.

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Definitions:

Loss

The negative financial result from a business's operations where expenses exceed revenues.

Fully Depreciated

An asset has reached the end of its useful accounting life, and its book value is reduced to salvage or residual value.

Plant Asset

Long-term tangible assets that are used in the operation of a business and not expected to be converted to cash in the short term.

Salvage Value

An estimation of the residual worth of an asset at the conclusion of its effectiveness.