If Your Total Satisfaction Increases When You Consume Another Unit

question 177

Multiple Choice

If your total satisfaction increases when you consume another unit, your marginal utility must be

• A)increasing.
• B)decreasing.
• C)negative.
• D)positive.

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Definitions:

Random Experiment

An experiment or process for which the outcome cannot be predicted with certainty ahead of time, involving random variables.

Mutually Exclusive

refers to events that cannot occur at the same time in a probabilistic experiment.

P(A)

The probability of an event A occurring.

P(B)

Represents the probability of an event B occurring in probability theory and statistics.