Which of the Following Is Correct

question 324

Multiple Choice

Which of the following is correct?

• A)There is no firm mathematical relationship between marginal utility and total utility.
• B)Total utility is equal to the change in marginal utility from consuming an additional unit of a product.
• C)If marginal utility is diminishing and is a positive amount, total utility will increase.
• D)If marginal utility is diminishing, total utility must also be diminishing.

---

Definitions:

Perpetual Inventory System

An inventory management system where records of inventory quantities are updated on a continuous basis as transactions occur.

Accounts Payable

The amount of money a company owes creditors (suppliers, etc.) in return for goods and services they have delivered.

Merchandise Inventory

The value of a company's current inventory of goods available for sale.

Perpetual System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.