Sadie Has Just Eaten a Donut and Says It Gave

question 117

Multiple Choice

Sadie has just eaten a donut and says it gave her a utility of 6.If she chooses to eat another donut:

• A) we can assume she will get an increase in utility of at least 6 from the additional donut.
• B) we can assume she will get a decrease in utility from the additional donut.
• C) we can assume she will get an increase in utility of less than 6 from the additional donut.
• D) we can assume Sadie's total utility will fall because of diminishing marginal utility.

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Definitions:

Asset Revaluations

The process of adjusting the book value of a company's assets to reflect their current market values.

Stated Value

A value assigned to no-par value stock by the company's board of directors, used as a basis for accounting and financial reporting.

Common Stock

Equity ownership in a corporation, with claims on its earnings and assets being secondary to those of bondholders and preferred shareholders.

Shares

Units of equity ownership in a corporation, representing a portion of the company's capital stock.