The Following Schedule Shows the Utility Mr

question 15

Multiple Choice

The following schedule shows the utility Mr. Pomeroy derives from consumption of various amounts of food per day. Use it to answer the next question.

-A person who eats a first chocolate from a box of candies,and a second,then a third,and so on (and nothing else) ,in an afternoon experiences a

• A) continuous fall in total utility.
• B) continuous rise in marginal utility.
• C) simultaneous rise and fall in both total and marginal utility.
• D) rise in marginal utility while total utility declines.
• E) rise in total utility while marginal utility rises and then falls.

---

Definitions:

Spontaneously Generated Funds

Internal funds generated by a company's operations without the need for external financing.

Retained Earnings

The portion of net income not distributed to shareholders but reinvested in the business or kept as reserve.

Operational Funds

Money that is available for daily business activities, including salaries and maintenance, ensuring smooth operations.

Full Capacity Sales

Full capacity sales refer to the maximum sales level that a company can attain with its current production capacity and resources, without additional investment.