"Diminishing Marginal Utility Means a Downward Sloping Total Utility Curve

question 316

True/False

"Diminishing marginal utility means a downward sloping total utility curve." True or false? Explain.

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Definitions:

Clearinghouse

An intermediary agency that facilitates the clearing and settling of financial transactions, often associated with exchanges and securities.

Profit

The earnings resulting when business activity revenues exceed the necessary expenses, costs, and taxes to maintain the activity.

Long Oil Futures Contract

An agreement to buy oil at a specified price on a specified future date, bet taken with the expectation that oil prices will rise.

Close Position

The act of selling or buying securities to offset an existing position, thereby ending the investor's exposure to that investment.