When the Incremental Satisfaction Derived from an Additional Unit of a Good

question 42

Multiple Choice

When the incremental satisfaction derived from an additional unit of a good or service decreases as more is consumed,it is known as:

• A) consumer equilibrium.
• B) marginal benefit.
• C) diminishing marginal utility.
• D) decreasing opportunity cost.

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Definitions:

Expenses

Costs incurred by a business in the process of earning revenue, such as salaries, rent, and utilities.

Assets

Resources owned or controlled by a company with expected future economic benefit.

Revenues

The total amount of money generated by a company from its normal business operations, before any costs or expenses are deducted.

Total Liabilities

The sum of all financial obligations or debts that a company owes to outside parties, listed on the balance sheet.