Marginal Utility Is the

question 251

Multiple Choice

Marginal utility is the

• A) change in total utility that results from a one-unit increase in the quantity of a good consumed.
• B) total benefit from the consumption of a good or service.
• C) quantity of a good a consumer prefers.
• D) average utility per unit consumed.
• E) change in total utility that results from a one dollar increase in the price of a good consumed.

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Definitions:

Accounts Receivables

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Cost of Goods Sold

Represents the direct costs attributable to the production of goods sold in a company, including the cost of the materials and labor used to create the product.

Leverage Ratios

Financial ratios that measure the extent to which a firm uses debt as a source of financing and its ability to service that debt.

Financing

The process of providing or obtaining the funds necessary for an investment, project, or business venture.