If, When You Consume Another Piece of Candy, Your Marginal

question 203

Multiple Choice

If, when you consume another piece of candy, your marginal utility is zero, then

• A)you want more candy.
• B)you have maximized your total utility from consuming candy.
• C)you have not yet reached the point of diminishing marginal utility.
• D)you should consume less candy.

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Definitions:

Total Cost

The combined total of expenses involved in making goods or services, including costs that do not change and those that do.

Variable Input

Any resource used in production whose quantity can be changed in the short term to increase or decrease output, such as labor or raw materials.

Marginal Cost

The expenditure incurred from creating one more unit of a product or service.

Total Variable Cost

The total of expenses that vary directly with the level of production or output.