If Marginal Utility Is Positive but Diminishing, Then Total Utility

question 191

Multiple Choice

If marginal utility is positive but diminishing, then total utility must be ________ as consumption of the good increases.

• A) decreasing
• B) positive and rising at an increasing rate
• C) positive and rising at a decreasing rate
• D) positive and rising at any rate

Appreciate the impact of psychological research on understanding health-related behaviors and conditions.

Grasp the historical significance and evolution of cognitive psychology.

Recognize the importance of cultural and gender diversity in psychological research and practice.

Understand Freud's influence on psychology and his clinical methods.

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Definitions:

Midpoint Formula

A method used in economics and mathematics to calculate the average rate of change or percentage change between two points on a line or curve.

Supply Elasticity

Measures the responsiveness of quantity supplied to a change in the price of a good or service.

Total Revenue

The overall amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price; high elasticity indicates a significant response, while low elasticity indicates little to no response.