If Total Utility Increases as Consumption of a Good Increases

question 40

True/False

If total utility increases as consumption of a good increases, then marginal utility must be increasing also.

---

Definitions:

Depreciation

An accounting method to allocate the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or obsolescence.

Gift Tax

A tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the value of the asset in the marketplace.

Gain

The financial benefit obtained when the selling price of an asset exceeds its purchase price.