The Fact That Your Fourth Slice of Pizza Does Not

question 3

Multiple Choice

The fact that your fourth slice of pizza does not generate as much satisfaction as your third slice is an example of

• A)consumer surplus.
• B)diminishing total utility.
• C)diminishing marginal utility.
• D)the paradox of value.
• E)the law of demand.

---

Definitions:

Hold-Up Problem

Arises in business and negotiation when one party has the opportunity to exploit the other in a contractual agreement, often after making a relationship-specific investment.

Mergers

The combination of two or more companies into one, with the aim of achieving synergies such as higher efficiency or market share.

Contracts

legally binding agreements between two or more parties that outline terms and conditions of a specific transaction or relationship.

Marginal Cost

The cost incurred to produce one additional unit of a good or service, critical for pricing and production decisions.