If Total Utility Increases at a Decreasing Rate as a Consumer

question 248

Multiple Choice

If total utility increases at a decreasing rate as a consumer consumes more coffee, then marginal utility must

• A)remains constant.
• B)increase also.
• C)decrease.
• D)be negative.

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Definitions:

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group fall.

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains values within specified intervals.

Standard Distribution Table

A mathematical table used for finding areas under the curve of the standard normal distribution, often used in statistics.

Rental Price

The amount of money charged to rent a property, such as an apartment or house, typically billed on a monthly basis.