Marginal Utility Is

question 68

Multiple Choice

Marginal utility is

• A)the change in total utility divided by the price of the last unit of a good or service consumed.
• B)the change in total utility a person receives from consuming an additional unit of a good or service.
• C)the utility from consuming a given quantity of a good or service.
• D)the decrease in total utility from consuming more and more units of a good or service.

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Definitions:

Ordinary Expense

In tax terminology, ordinary expense refers to any expense common and accepted in your trade or business operation.

Income Recognition

The accounting principle stating that income should be recognized in the accounting period in which it is earned, regardless of when the cash is received.

Partnership %

A percentage representation of an individual partner's stake in a partnership, correlating to their share of profits, losses, and liabilities.

Partnership Basis

The amount of a partner's investment in a partnership, used to determine the tax treatment of distributions, additional contributions, and share of partnership income or loss.