Which of the Following Statements Is Correct

question 230

Multiple Choice

Which of the following statements is correct?

• A)When marginal utility is decreasing, an increase in the quantity consumed will decrease total utility.
• B)When marginal utility is positive, an increase in the quantity consumed will decrease total utility.
• C)When marginal utility is positive, an increase in the quantity consumed will increase total utility.
• D)When marginal utility is zero, an increase in the quantity consumed will make total utility zero.

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Definitions:

Stock Price

The current price at which a share of a company is being traded on the stock market.

Exercise Price

Another term for strike price, specifically the price at which an option or warrant can be executed.

Put Option

An agreement allowing the owner the option, yet not the requirement, to sell a predetermined quantity of a foundational asset at an agreed price during a defined period.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an underlying asset at a predetermined price within a specific time period.