Which of the Following Is Correct

question 158

Multiple Choice

Which of the following is correct?

• A)If total utility is increasing, then marginal utility is decreasing.
• B)If total utility is decreasing, then marginal utility is increasing.
• C)If total utility is increasing, then marginal utility is zero.
• D)If total utility is increasing, then marginal utility is greater than zero.
• E)If marginal utility is increasing, then marginal utility is less than zero.

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Definitions:

Internal Rate

Represents the internal rate of return (IRR), a metric used to estimate the profitability of potential investments.

Discount Rate

is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows, affecting investment valuations and interest rates on loans.

Net Present Value

The current value of a series of future cash flows, discounted back to the present using a specific rate.