If Total Utility Is Increasing, Then Marginal Utility

question 7

Multiple Choice

If total utility is increasing, then marginal utility

• A)must be declining.
• B)must be increasing.
• C)must be increasing at an increasing rate.
• D)may either be increasing or decreasing, but it must be greater than zero.

---

Definitions:

Unrealized Inventory Profits

Profits that result from internal sales within a company or conglomerate but have not been realized through sales to external parties.

Significant Influence

A level of control that an investor has over a business entity, typically through ownership of a significant but not majority share of voting stock.

Consolidated Statement

A financial statement that aggregates the financial positions and results of operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.