If I Get 10 Units of Total Utility (TU)from 2

question 9

Multiple Choice

If I get 10 units of total utility (TU) from 2 oranges, 14 of TU from 3 oranges, and 17 of TU from 4 oranges, I obey the law of diminishing marginal utility because:

• A)MU falls as consumption increases.
• B)TU increases as consumption increases.
• C)TU > MU.
• D)MU > TU.
• E)MU = TU.

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Definitions:

Liquidity

A firm’s cash and marketable securities position, refers to its ability to meet maturing obligations. A liquid asset is any asset that can be quickly sold and converted to cash at its “fair” value. Active markets provide liquidity.

Inventory Turnover Ratio

Sales divided by inventories.

Liquidity Position

A measure of a company or individual's ability to quickly convert assets into cash to meet financial obligations.

Efficiently

The ability to achieve a goal or perform a task with the least waste of time and effort; effectiveness and efficiency combined.