If Marginal Utility Is Negative, Then Total Utility Is Downward-Sloping

question 48

True/False

If marginal utility is negative, then total utility is downward-sloping.

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Definitions:

LRAC Curve

The Long Run Average Cost curve shows the lowest possible average cost of production at different levels of output when all inputs are variable.

Entry

The act or process of entering into a market as a new supplier or producer, often facing barriers such as high startup costs or regulations.

Breaks Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Short Run

A time period during which at least one input, like plant size or capital, is fixed and cannot be changed, focusing on immediate operational decisions.