Negative Marginal Utility Means That

question 132

Multiple Choice

Negative marginal utility means that

• A)total utility is also negative
• B)marginal utility increases as additional units are consumed
• C)the price of the product increases as additional units are consumed
• D)the total revenue spent on the product decreases as more of the product is purchased
• E)total utility decreases as additional units are consumed

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Definitions:

Owner's Drawings

The withdrawal of business assets by the owner for personal use, which reduces the equity of the owner in the business.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain expenses.

Operating Expenses

Regular costs associated with operating a business, such as rent, utilities, and payroll.

Net Income

The final amount of profit a company declares after reducing its total revenue by the incurred taxes and expenses.