If Marginal Utility Is Negative

question 451

Multiple Choice

If marginal utility is negative,

• A) total utility increases at a decreasing rate.
• B) the consumer considers extra units of the commodity to be a "bad."
• C) the consumer will want to consume the unit only if it is free.
• D) the consumer likes the commodity, but not as much as he or she once did.

---

Definitions:

Par Common Stock

The nominal or face value assigned to common stock shares as stated in the corporate charter, unrelated to market value.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of cash.

Market Price

Market price is the current price at which an asset or service can be bought or sold in the open market.

Total Assets

The sum of all current and non-current assets owned by a business, reflecting the company's overall financial strength on the balance sheet.