Total Utility ________ as a Person Consumes More of One

question 78

Multiple Choice

Total utility ________ as a person consumes more of one good and marginal utility ________.

• A) increases; increases
• B) increases; decreases
• C) remains constant; decreases
• D) fluctuates; decreases
• E) decreases; increases

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Definitions:

Perfectly Competitive Firm

A company operating in a market where there are many sellers and buyers, the product is identical across suppliers, and there are no barriers to entering the market, leading to no control over prices.

Marginal Revenue Product

The additional revenue gained by employing one more unit of a factor of production.

Resource Inputs

The various resources used in the production of goods and services, such as labor, capital, and materials.

Marginal Revenue Product Curve

A graphical representation showing how the addition of one more unit of resource varies the revenue generated.