As More of a Good Is Consumed,the Marginal Utility of an Additional

question 71

Multiple Choice

As more of a good is consumed,the marginal utility of an additional unit ________,so consumers are willing to pay ________ for an additional unit.

• A) decreases; less
• B) increases; less
• C) decreases; more
• D) increases; more
• E) does not change; less

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Definitions:

Profitability

The extent to which an enterprise or operation generates income or economic benefits.

Largest Firms

The biggest companies within a particular market or industry based on criteria such as revenue, employees, or market capitalization.

Product Variation

The process by which firms make a product distinct from similar products offered by competitors, through features, design, or quality.

Mutual Interdependence

A situation in which the outcomes, actions, or decisions of two or more parties affect each other.