When Total Utility Is at a Maximum, Marginal Utility Is

question 224

Multiple Choice

When total utility is at a maximum, marginal utility is:

• A) rising.
• B) at its average value.
• C) at a maximum.
• D) zero.

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Definitions:

Production Functions

Mathematical models that describe the relationship between input factors (like labor and capital) and the output of goods or services.

Technically Feasible

Refers to a project or proposal that is possible and practical to achieve with the current level of technology.

Least Cost

A principle or strategy focused on achieving a particular objective at the minimum possible cost.

Short Run

A period in economics where at least one factor of production is fixed, and firms can only partially adjust to changes in market demand.