Marginal Utility

question 88

Multiple Choice

Marginal utility

• A) at first rises and then declines as a person consumes more of a good or service.
• B) can be thought of as being the equivalent to total utility.
• C) equals the total satisfaction from consumption of goods and services.
• D) is stable, but then as a person consumes more of a good or service, has a propensity to increase.

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Definitions:

Subsidiary Company

A company that is completely or partially owned and controlled by another company, known as the parent company.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations.

Held-to-Maturity Securities

Investment securities that a company has the intent and ability to hold until a specified maturity date.

Interest Revenue

Income earned from lending investments or depositing funds in interest-bearing accounts, often reported on the income statement.